HC Deb 30 October 1996 vol 284 cc163-4W
Mr. Burden

To ask the Secretary of State for Social Security how many people (i) claimed and (ii) received(a) sickness benefit for each year since 1990, (b) invalidity benefit for each year since 1990, (c) incapacity benefit short-term lower rate since its introduction, (d) incapacity benefit short-term higher rate since its introduction and (e) incapacity benefit long-term rate with invalidity allowance but without additional pension since its introduction. [744]

Mr. Burt

The information is in the tables.

Table A: sickness and invalidity benefit
Date Sickness benefit Invalidity benefit
Claimants Beneficiaries Claimants Beneficiaries
31 March 1990 309,000 103,000 1,209,000 1,209,000
30 March 1991 372,000 110,000 1,306,000 1,306,000
4 April 1992 458,000 138,000 1,439,000 1,439,000
3 April 1993 534,000 147,000 1,580,000 1,580,000
2 April 1994 568,000 127,000 1,681,000 1,681,000
12 April 1995 639,000 127,000 1,767,000 1,767,000

Source: I per cent. sample of all sickness and invalidity benefit claimants at date specified.

Table B: incapacity benefit (IB)
Claimants at 31 May 1996 Beneficiaries at 31 May 1996
IB short term lower 711,000 117,000
IB short term higher 106,000 105,000
IB long term 1,580,000 1,572,000
IB long term with invalidity allowance and no additional pension n/a 141,000
IB long term with invalidity allowance and additional pension n/a 395,000

Source:

5 per cent. sample from the incapacity benefit computer system. Excludes a small number of cases not held on the system.

Mr. Burden

To ask the Secretary of State for Social Security (1) what estimate his Department has made of the savings accruing from the abolition of the additional invalidity benefit; [732]

(2) what factors underlay the abolition of the additional invalidity benefit following the introduction of incapacity benefit in April 1995. [730]

Mr. Burt

The additional pension component of invalidity benefit was abolished because it was poorly targeted and did not represent value for money for the taxpayer. As additional pension was earnings-related, those with the highest earnings prior to receipt of benefit gained most and were also more likely to be in receipt of other income such as an occupational pension. The cost of additional pension was projected to rise to almost £2 billion by the year 2000–01.

Estimates for net savings from the abolition of AP are in the table.

Year Net savings (£ million)
1995–96 105
1996–97 275
1997–98 425
1. Estimates are in cash terms and based on Government Actuary Department forecasts and family expenditure data.
2. Savings are net of any income-related benefit offsets.

Mr. Burden

To ask the Secretary of State for Social Security what was the annual cost to his Department of incapacity benefit for each of the five years before its abolition. [731]

Mr. Burt

The information is in the table.

£ million
Year Expenditure
Sickness benefit (SB) Invalidity benefit (IVB) Administration costs (SB and IVB) Total
1990–91 216 4,431 208 5,071
1991–92 274 5,485 275 6,034
1992–93 364 6,210 322 6,896
1993–94 365 7,068 359 7,792
1994–95 342 7,705 347 8,394
1. All figures except for sickness benefit and invalidity benefit expenditure for 1994–95 are from successive departmental reports.
2. Expenditure figures for sickness benefit and invalidity benefit in 1994―95 are from the national insurance fund accounts and supersede those in the current departmental report.
3. Sickness and invalidity benefits were replaced by incapacity benefit from 13 April 1995.