§ 9. Mr. PickthallTo ask the Secretary of State for Social Security what he estimates the savings will be on his departmental budget arising from the introduction of incapacity benefit in each of the first three years starting with its introduction in April 1995.
§ Mr. ScottOur latest estimates are that the net savings in benefit expenditure will be £415 million in 1995–96; £1.2 billion 1996–97; and £1.7 billion in 1997–98.
§ Mr. PickthallIs not it contemptible that the Government should make those savings at the expense of the most vulnerable section of our community, especially in the wake of VAT on domestic fuel and changes to vehicle excise duty? Is not it contemptible that, under the changes, a parent under the age of 40 with two children could lose up to £45 for a period of 24 weeks? Is not the Minister ashamed to put such measures through Parliament?
§ Mr. ScottThe hon. Gentleman should be as aware as the rest of the House that expenditure on the present invalidity benefit rose from £2.7 billion to £6.1 billion in real terms over the past decade. It was essential to get that expenditure under control. We are committed to retaining proper provision for genuine long-term sick and disabled people.
§ Mr. BradleyAt a time when the Government are trailing measures to reduce unemployment, will the Minister confirm that, on the Government's own estimates, the cuts in invalidity benefit will result in at least another 200,000 people on the dole queues?
§ Mr. ScottI certainly would not deny the figures which the hon. Gentleman has given. I would say that, in the first year, the figure would be about 90,000. It is right, however, that we should have a pattern of benefits that provides back-to-work benefits for those who are unemployed and able to get back into work, and proper benefits for those who are sick and unable to work in the long term.