§ Lord Morris of Manchesterasked Her Majesty's Government:
What investigations they have undertaken into the reasons for the underspend on disability benefits of £754 million reported by the National Audit 153WA Office; and what action they have taken since receiving the report. [HL1262]
§ Baroness Hollis of HeighamThe figure of £754 million in the National Audit Office's report is the difference between forecast and actual expenditure on attendance allowance, disability living allowance, invalid care allowance and severe disablement allowance in 1998–99. This was because, although the number of people receiving disability benefits and total expenditure on these benefits had continued to increase, these increases were at a slower rate than expected. An important reason for this change has been improvements to the management of the benefits, for example the safeguarding project where supplementary evidence is sought for all claims involving DLA higher rate mobility component.
Although the £754 million is not therefore an estimate of unclaimed benefit, it is important to ensure those who are entitled to benefits are able to claim them with a degree of confidence. At the time the National Audit Office's report was published we had already initiated measures to improve the take-up of attendance allowance and disability living allowance through increased public confidence in decisions on entitlement, and these measures continue. This will also open the way for more people to receive invalid care allowance.
Severe disablement allowance fails to help those it was intended to help and the changes we are introducing from April 2001 will concentrate resources on young people who have never had an opportunity to work and build up a contribution record.