Benefit Entitlement (Hansard, 14 June 1999)

§ Mr. Bayley

An important part of our programme of welfare reform is the need to ensure the amount of benefit paid to claimants is correct and remains correct, and that changes which could affect benefit entitlement are properly taken into account. This means having a system of review which is fair, appropriate and sensitive to the needs of individual claimants.

We have recently made changes to the Social Security (Adjudication) Regulations which, from 1 June, introduced a common test of reasonableness for both misrepresentation of, and failure to disclose information about disability-related changes. These changes applied to Disability Living Allowance, Attendance Allowance and 36W benefits for people incapable of work and are intended to protect vulnerable, disabled people from an unfairness in the application of the overpayment recovery rules. They recognise that it is often very difficult for claimants to understand that gradual improvements in their medical condition, or response to new treatment which helps alleviate their problems, might have an effect on benefit. Unless it is considered that the claimant could reasonably have been expected to be aware of a fact or to have reported a change in circumstances, any resultant change in entitlement which has the effect of removing or reducing benefit will not be applied retrospectively.

Today I am laying regulations to ensure that the same provisions to benefit sick and disabled people are carried into the new system for decision making and appeals. In addition they will be extended to cover people claiming Industrial Injuries Disablement Benefit and Severe Disablement Allowance.

The regulations also deal with the circumstances in which a decision based on a determination about incapacity for work can be reconsidered. They make it clear that when deciding whether a person continues to be entitled to a benefit awarded on basis that they are still incapable of work, the decision maker may use the findings from carrying out a further All Work Test as grounds to make a new decision. The regulations provide that where the decision maker has clear information from a new medical report provided by the Department's examining doctor, that the person no longer satisfies the conditions for entitlement, the award of benefit can be changed.

This approach is in line with past practice which was called into question by a decision of the Social Security Commissioners. It is not expected that there will be any impact in the outcome of decisions in individual cases.