§ Mr. FieldTo ask the Secretary of State for Social Security if he will break down the estimated savings to be made on changes to incapacity benefit into those from(a) the clawback on occupational payments and (b) the introduction of new contributory rules. [71417]
§ Mr. BayleyThe proposed modernisation of Incapacity Benefit for new claimants, with reformed contribution conditions and taking into account 50 per cent. of amounts of occupational and personal pensions over £50 a week, will reduce benefit expenditure. It is estimated that it will be reduced by £70 million in the first year (£45 million due to occupational pensions and £25 million to contribution conditions), £255 million in the third year (£190 million due to occupational pensions and676W £60 million to contribution conditions) and £700 million per year after 10 years (£550 million due to occupational pensions and £150 million to contribution conditions).
Notes:
1. Figures may not sum due to rounding.
2. Savings from taking account of occupational and personal pensions allow for overlap with savings from reformed contribution conditions.
3. 10 year figures are rounded to the nearest 50 million which reflects the greater degree of uncertainty in the longer term.