HC Deb 20 March 1995 vol 257 cc12-3
14. Sir David Knox

To ask the Secretary of State for Social Security what was the total expenditure on social security benefits in 1979, 1992 and 1994, at constant prices. [13001]

Mr. Lilley

At today's prices, the figures for total expenditure on social security benefits in 1979, 1992 and 1994 are £47 billion, £79 billion and £85 billion.

Sir David Knox

Does my right hon. Friend agree that those figures show the Government's commitment to the less well-off members of society? Does he also accept that the lot of the less well-off provides no grounds for complacency?

Mr. Lilley

I entirely agree with my hon. Friend. The figures refute two frequent assertions: first, that we have been cutting back on social security, which we manifestly have not; and, secondly, that there has been no growth in benefits. When one considers where the growth has been coming from and sets aside all benefits to unemployed people, one sees that other benefits, particularly pensions and benefits for the disabled, have still grown. That means that, since 1979, all other benefits have been growing at 3 per cent. a year faster than inflation. We are, however, carrying out a long-term review to ensure that that huge sum of money is focused on those in greatest need and that, in future, growth does not outstrip the nation's ability to pay.

Mr. Pike

Does the Secretary of State admit that those figures would show a different basis of comparison, had unemployment remained constant at the figure that the Government inherited in 1979 and had the Government not entered the exchange rate mechanism at the wrong rate and caused a massive increase in unemployment?

Mr. Lilley

I do not think that the hon. Gentleman listened to my answer to my hon. Friend the Member for Staffordshire, Moorlands (Sir D. Knox). I pointed out that, even if all benefits to unemployed people had been set aside, or held constant at the 1979 level, all the other expenditure on social security—eight ninths of the total—has grown at 3 per cent. a year faster than inflation. That is because of the growing number of retired and elderly people but also because of the increased and new benefits going to disabled people, as well as the growth in invalidity benefit, which, together with housing benefit and benefits to lone parents, is an area that we are tackling.