HL Deb 08 November 1999 vol 606 cc129-31WA
Lord Rix

asked Her Majesty's Government:

What is their estimate of the minimum and maximum number of beneficiaries (a) per annum; (b) after five years; and (c) after 10 years from the proposal to exempt those who are entitled to the highest rate care component of disability living allowance from the abatement of incapacity benefit by reference to occupational pension which is proposed in the Welfare Reform and Pensions Bill. [HL4338]

Baroness Hollis of Heigham

The information is in the table.

The Government's proposal to increase to £85 the threshold above which pension income is taken into account significantly reduces the number of people who will be affected by the measure and therefore the number who would need to rely on the exemption.

Minimum and Maximum Estimated Number Benefiting
Numbers Benefiting Year 1 Year 5 Year 10
Minimum 500 6,500 7,500
Maximum 1,500 7,500 12,500

Lord Rix

asked Her Majesty's Government:

What is their estimate of the minimum and maximum number of beneficiaries (a) per annum; (b) after five years; and (c) after 10 years from the proposal to exempt those who have been in receipt of disabled person's tax credit and are earning below the lower earnings limit from the tighter contribution conditions proposed for incapacity benefit in the Welfare Reform and Pensions Bill; and [HL4340]

What is their estimate of the savings expected to arise from the proposal to tighten the contribution conditions for incapacity benefit in the light of the further proposal to exempt those who have been in receipt of the disabled person's tax credit and are earning below the lower earnings limit. [HL4341]

Baroness Hollis of Heigham

Allowing disabled persons tax credit recipients to continue to qualify for incapacity benefit on the basis of contributions paid in any tax year will provide security for up to 2,000 disabled people who want to work but earn less than the lower earnings limit. However, the number of people who will actually need to rely on this provision in order to claim incapacity benefit in any year and the financial effects cannot be estimated reliably.

Under the Government's proposals to amend the requirement to have paid contributions in one year out of the last three tax years rather than one year out of the last two, it is estimated that the savings would be £20 million in year one, £40 million in year two, £55 million in year three and £120 million in year 10. It is not possible to estimate reliably the effects on these figures of the disabled person's tax credit exemption.

Lord Rix

asked Her Majesty's Government:

What are the cost implications of making exemption from the abatement of incapacity benefit retrospective to the onset of higher rate care needs where disability living allowance care component at the highest rate is subsequently awarded. [HL4343]

Baroness Hollis of Heigham

If the highest rate care component of disability living allowance is awarded retrospectively after incapacity benefit is in payment the exemption will apply from the retrospective date of the disability living allowance award. This is included in the estimate that the measure will save £25 million in year one, £75 million in year two, £120 million in year three and £330 million in year 10.