HC Deb 15 February 1994 vol 237 cc690-1W
Mr. Bradley

To ask the Secretary of State for Social Security how many people will lose the right to claim short-term incapacity benefit by virtue of the changes in contribution conditions; and what estimate he has made of the annual savings resulting from each change.

Mr. Scott

The contribution conditions for short-term incapacity benefit will be the same as those which currently apply to sickness benefit, but the exemption from satisfying these conditions in industrial injury and disease cases will not be carried forward. This change will affect around 3,000 claims a year, producing net savings of under £5 million in 1995–96; and around £5 million in 1996–97.

Note: Estimates expressed in constant 1993–94 prices, rounded to the nearest £5 million, and net of offsetting changes in income related benefit expenditure.

Mr. Bradley

To ask the Secretary of State for Social Security what are the estimated savings to his Department arising from each clause of the Social Security (Incapacity For Work) Bill.

Mr. Scott

The estimated savings are in the table. Clauses 1 and 2 have been grouped because it is not feasible to apportion the savings further. The total savings shown differ from those specified in the explanatory and financial memorandum in two wayssavings that arise from extending the qualifying period for the disability premium paid with income-related benefits to 52 weeks are excluded. This will be given effect in regulations and not the Bill; the savings in the Explanatory and Financial Memorandum were given in cash terms.

Clause 1995–96 £ million 1996–97 £ million
1 and 2 -145 -325
3 n.a. n.a.
4 -160 -475
5 -50 -180
6 n.a. n.a.
7 Negligible Negligible
8 n.a. n.a.
9 +5 +5
10 n.a. n.a.
11 -25 -90

Note:

Estimates are expressed in constant 1993–94 prices and are rounded to the nearest £5 million. Totals may not add up due to rounding.

Mr. Bradley

To ask the Secretary of State for Social Security how many people found incapable of work under the new incapacity test would be excluded from receiving incapacity benefit by other changes included in the Social Security (Incapacity For Work) Bill; and how much each category of change is expected to save.

Mr. Scott

We estimate that as a result of the proposed upper age limits for incapacity benefit some 50,000 people in 1995–96, and 150,000 in 1996–97, will receive retirement pension instead of incapacity benefit. The estimated effect on benefit expenditure is negligible, as sickness benefit and invalidity benefit currently paid to people over pension age is based on their retirement pension entitlement. The exemption from the sickness benefit contribution conditions for people suffering from industrial injury or disease will not apply to incapacity benefit. This change will affect around 3,000 claims a year, producing net savings of under £5 million in 1995–96; and around £5 million in 1996–97.

Notes: Estimates expressed in constant 1993–94 prices, rounded to the nearest £5 million, and net of offsetting changes in income related benefit expenditure.

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