§ Mr. Battle
To ask the Secretary of State for Social Security if he will publish a table showing the main changes to national insurance benefits and the savings or expenditure which accrued from each change since 1979 in(a) cash prices and (b) 1988 prices.
§ Mr. Scott
[holding answer 22 December 1988]Since 1978–79, expenditure on national insurance benefits has grown by almost £15 billion in cash terms and by over £2 billion in real terms. For a fuller analysis of the growth in 713W expenditure across the whole of the social security programme, I refer the hon. Member to my reply to my hon. Friend the Member for York (Mr. Gregory) today.
Changes to national insurance benefits: estimated expenditure effects Great Britain, £ million Financial year Cash effect1 Cash effect in 1988 prices Uprating of long-term benefits by prices 1981–82 -280 -400 5 per cent, abatement in uprating of invalidity benefit, unemployment benefit, sickness benefit and maternity allowance 1981–82 -160 -230 Abolition of earnings-related supplements to short-term benefits 1982–83 -390 -520 Introduction of statutory sick pay2 1983–84 -10 -10 Restoration of 5 per cent, abatement of UB 1984–85 80 100 Offsetting of invalidity benefit age addition by additional pension 1986–87 -140 -160 Restoration of 5 per cent, abatement of IVB 1986–87 120 130 Extension of statutory sick pay2 1986–87 -80 -90 Introduction of statutory maternity pay2 1987–88 40 40 1 The figures shown represent the initial estimates of the effect of the changes on national insurance benefit expenditure only in the first year following implementation in which the cost/savings of the change exceeded £50 million. No account is taken of the impact of the changes on administration costs, income tax and national insurance contribution revenues and expenditure on income related benefits, other than shown in footnote 2. 2 The amounts shown represent the net effect on NI benefit expenditure after employers' recoveries from contributions to the NI Fund in respect of payments of statutory sick pay and statutory maternity pay to their employees.