§ Mr. Alfred MorrisTo ask the Secretary of State for Social Security, pursuant to his answer of 11 November,Official Report, column 90, what have been the annual savings to his Department in constant prices of ending the link between average earnings and (a) invalidity allowance, (b) attendance allowance, (c) non-contributory invalidity pensions and its successor benefit and (d) invalidity care allowance. [7049]
§ Mr. Burt[pursuant to his reply, 4 December 1996, c. 714–15]: The information is set out in the table:
79W
Net savings derived from uprating in line with growth in prices only from 1980 as compared to uprating in line with the higher of the growth in prices or average earnings £ million Year Invalidity Allowance (IVA) Attendance Attendance(AA) NCIP/Severe Disablement Allowance (SDA) Invalid Care Allowance(ICA) 1980–81 1— 20 1— 1— 1981–82 5 25 5 1— 1982–83 5 55 5 1— 1983–84 5 90 5 1— 1984–85 15 110 10 1— 1985–86 15 150 10 1— 1986–87 20 220 20 15 1987–88 30 305 25 30 1988–89 35 360 30 30 1989–90 45 420 40 30 1990–91 50 465 50 35 1991–92 55 615 60 50
Net savings derived from uprating in line with growth in prices only from 1980 as compared to uprating in line with the higher of the growth in prices or average earnings £ million Year Invalidity Allowance (IVA) Attendance Allowance (AA) NClP/Severe Disablement Allowance (SDA) Invalid Care Allowance (ICA) 1992–93 65 840 75 60 1993–94 75 1,010 85 75 1994–95 80 1,185 95 95 1 Denotes negligible savings. 1. Estimates are rounded to the nearest £5 million.
2. Estimates converted to 1996–97 prices using GDP deflator.
3. Estimates for Invalidity Allowance exclude savings from individuals not currently entitled to it since it is entirely offset against additional pension, but who might become entitled if the earnings uprating was restored.
4. Estimates take account of offsetting costs in the income related benefits.
5. It is estimated that Attendance Allowance is Attendance Allowance and Disability Living Allowance (Care) highest and middle rate. The lowest rate of Disability Living Allowance (Care) has been excluded from the calculation as it was introduced in 1992 and was therefore, never linked.