§ Mr. Alfred MorrisTo ask the Secretary of State for Social Security what have been the annual savings to his Department in constant prices of ending the link between disability benefit and average earnings. [1417]
78W
§ Mr. Burt[pursuant to his reply, 11 November 1996, c. 90]: The link between invalidity benefit and earnings was broken in 1980 to ensure that long-term provision of benefit based on incapacity should be sustainable.
The additional costs which would have been incurred had invalidity benefit been increased by the higher of average earnings or prices are set out in the table:
Year Additional cost 1996–97 price £ million 1980–81 5 1981–82 35 1982–83 55 1983–84 65 1984–85 145 1985–86 175 1986–87 300 1987–88 450 1988–89 595 1989–90 730 1990–91 855 1991–92 985 1992–93 1,235 1993–94 1,420 1994–95 1,520 1. Estimates cover Invalidity Pension and adult dependency increases only.
2. Estimates rounded to nearest £5 million.
3. Estimates converted to 1996–97 prices using the GDP deflator.
4. Offsetting costs estimated using Family Expenditure Survey data.