§ Mr. WillettsTo ask the Secretary of State for Work and Pensions how many people have had income from a private pension or permanent health insurance taken into account for the purposes of calculating their incapacity benefit claiming and what the average reduction in benefit has been for people affected in this way. [86717]
§ Mr. Nicholas BrownIncapacity Benefit (IB) exists to provide a measure of earnings replacement for people of working age who are incapable of work. Where a person is duplicating this provision, the law provides for this to be taken into account. If a person claiming IB receives an occupational pension, personal pension or payments through a permanent health insurance scheme of £85 per week or more, their IB is reduced by half the amount which exceeds £85. Only people making claims from 6 April 2001 are affected by the new rules.
As of 31 August 2002, 17,500 people have had their IB reduced under these rules with an average reduction of £33.18.
Notes:
1. Number of people who have had their benefit reduced is rounded to the nearest hundred.
2. Figures are subject to a degree of sampling variation.
Source:
5 per cent. samples of the Incapacity Benefit computer system, which exclude a small number of cases held clerically.
Number of schemes notifying the Pensions Schemes Registry (PSR) they are commencing wind up Number of members in schemes notifying PSR they are commencing wind up Number of schemes notifying PSR they are commencing wind up and are still in the process Number of members in schemes notifying PSR they are commencing wind up and still in the process 1 April 1997–31 March 1998 7,334 321,254 84 10,271 1 April 1998–31 March 1999 6,530 322,699 113 2,309 1 April 1999–31 March 2000 6,003 321,991 4,287 101,236 1 April 2000–31 March 2001 5,304 316,205 1,903 74,403 1 April 2001–31 March 2002 4,651 301,646 2,206 73,038