HC Deb 08 December 1997 vol 302 c471W
Ms Corston

To ask the Secretary of State for Social Security (1) what would have been the extra cost to the National Insurance Fund that would have arisen from uprating contributory invalidity benefit or incapacity benefit by the higher of average earnings or prices in each year since 1980–81; [15452]

(2) what the basic rate of invalidity benefit or incapacity benefit would have been in each year since 1980–81 if it had been uprated by the higher of average earnings or prices; and what was the actual rate for each of these years. [15453]

Mr. Denham

The information is in the table.

Year Actual rate of basic invalidity benefit (incapacity benefit from April 1995)(£s per week) Rate if uprated by the higher of earnings of prices Estimated additional annual costs £s million
1980–81 26,00 26.45 5
1981–82 28.35 29.60 40
1982–83 31.45 32.10 60
1983–84 32.60 34.90 75
1984–85 34.25 36.70 160
1985–86 38.30 41.60 190
1986–87 38.70 43.45 325
1987–88 39.50 45.90 490
1988–89 41.15 49.50 650
1989–90 43.60 53.90 795
1990–91 46.90 59.15 925
1991–92 52.00 65.60 1,065
1992–93 54.15 70.80 1,335
1993–94 56.10 74.25 1,530
1994–95 57.60 76.40 1,645
1995–96 58.85 79.45 1,620
1996–97 61.15 82.55 1,575
1997–98 62.45 86.00 1.560

Notes:

  1. 1. In April 1995 invalidity benefit was replaced by incapacity benefit. The amounts shown are those for the long term rate of incapacity benefit.
  2. 2. Uprating indices used are the Retail Prices Index (all items) and the Average Earnings Index (whole economy) as supplied by the Office of National Statistics.
  3. 3. The uprated figures have been rounded to the nearest five pence.
  4. 4. Estimates of additional costs are:
    1. (i) rounded to the nearest £5 million,
    2. (ii) cover invalidity pension-basic incapacity benefit and adult dependency additions and invalidity allowance only (IVA was replaced by age additions in April 1995),
    3. (iii) converted to 1997–98 prices using the GDP deflator and take account of offsetting costs in the income related benefits using family expenditure survey data.

Source:

Analytical Services Division.