§ Mr. Clayasked the Secretary of State for Social Services what will be the total cost of (a) paying a 7 per cent. increase in invalidity benefit to all invalidity pensioners and (b) paying a 7 per cent. increase to all other social security beneficiaries, broken down by category.
§ Mr. MajorI assume that the hon. Member is referring to the cost of this month's uprating, when the great majority of benefits will increase by 7 per cent. Invalidity benefit will, however, increase by 11.8 per cent. because of the restoration of the 5 per cent. abatement introduced in 1980.
The total net cost of this uprating of invalidity benefit is about £170 million in a full year. The figure takes account of the restoration of the abatement, the introduction by the Social Security Act 1985 of an offset between invalidity allowance and the additional component, and the effect on supplementary benefit entitlement.
The full year net costs of uprating other main benefits are:
Benefit Cost £ million Retirement pension 1,120 Widows' benefits 55 Unemployment benefit 115 Sickness benefit 20 Invalid care allowance 1 Attendance allowance 45 Severe disablement allowance 20 Mobility allowance 30 Industrial injuries benefits 30 War pensions 35 Maternity allowance 15 Child benefit* 100 One parent benefit 10 Family income supplement* 35 Supplementary benefits* 230 Housing benefit* — Notes:
1. All figures are rounded
2. Benefits marked * increase by an amount different from seven per cent.
3. The cost of increasing supplementary benefit and housing benefit is reduced by the relatively higher uprating of other benefits.
The total cost of the uprating is about £2,050 million.