HC Deb 23 July 1991 vol 195 cc539-40W
1. Mr. Home Robertson

To ask the Secretary of State for Social Security (1) what is the total value of benefits clawed back from claimants as a consequence of the subsequent award of compensation for industrial injuries and the number of claimants affected, during each year since 1 January 1987;

(2) what research has been undertaken into the effect of the enactment of legislation providing for a clawback of

Table 1
Pensioners Incomes 1974 1979 1988 Real terms percentage Increase 1974–79 Real terms percentage Increase 1979–88
Total social security benefits 47.20 53.00 60.70 12 14
Occupational pensions 12.40 13.90 27.70 12 99
Savings income 11.30 9.50 20.00 –16 110
Earnings 14.30 10.40 9.80 –27 –6
Total gross income 85.10 86.90 118.20 2 36
Total net income 77.40 79.60 106.30 3 33

Source: Family Expenditure Survey.

2. £s per week at 1988 prices.

In 1988, 74 per cent. of all pensioners received income from savings and the average aount that they received was £29.80. Also, 51 per cent. of all pensioners had an occupational pension and the average amount received was £47.00. Table 2 shows the comparable figures for 1974 and 1979.

social security benefits from people who receive such awards as a consequence of injury suffered after 1 January 1987 on the amount of damages awarded by the courts;

(3) what research has been undertaken into the effect of the enactment of legislation providing for a clawback of social security benefits from people who receive such awards as a consequence of injury suffered after 1 January 1987 on the amount of damages awarded by the courts.

Mr. Jack

The compensation recovery scheme was introduced on 3 September 1990 in accordance with the Social Security Act 1989. Under this scheme, compensators are required to offset an amount equal to the value of benefits received for the injury in question and to pay this to the Department. Since the scheme was introduced the total amount paid to the Department in employer liability cases was approximately £3.8 million. The number of claimants involved was 5,751.

Before 3 September 1990 compensators may have, under the Law Reform (Personal Injuries) Act 1948, reduced the compensation payments in line with benefits received, but no money was repaid to the Department.

No specific research into court awards has been undertaken since the compensation recovery scheme was introduced. However, in common with other aspects of the new arrangements, the Department is keeping the situation under review.