HC Deb 26 June 1996 vol 280 c172W
Mr. Alan Howarth

To ask the Secretary of State for Social Security (1) what estimate he has made of the savings to his Department for 1995–96 from(a) the introduction of incapacity benefit and (b) the new all work test of incapacity; [32487]

(2) what are the current estimates of the savings to his Department arising from the introduction of incapacity benefit in each of the years 1996–97, 1997–98, 1998–99, 1999–2000 and 2000–01. [32488]

Mr. Burt

The information is in the table.

The original estimates for savings in 1995–96 and 1996–97 have been revised. The new estimates for these years reflect the decision to control the number of pre-April 1995 cases being put through the all work test to ensure that the total number of cases being processed does not outstrip operational capacity. Long-term savings from the policy changes are unaffected by these changes.

Incapacity benefit
Year Estimated savings £ million
1995–96 340 of which 125 is attributable to the all work test
1996–97 1,060
1997–98 1,860
1998–99 2,200
1999–00 Not available
2000–01 2,500

1. Estimates for expenditure on incapacity benefit are contained in the 1996 Departmental Report, a copy of which is in the Library.

2. All estimates except that for 2000–01 are in cash terms rounded to nearest £10m.

3. Figures for 2000–01 are at 1995–96 prices rounded to nearest £100m.

4. The equivalent cash figure in 2000–01 assuming an uprating factor of 2.25 per cent. in each year after 1998–99 is £2,800m.

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