§ Mr. Arthur Davidsonasked the Secretary of State for Social Services why councillors cannot claim attendance allowance to cover their expenses whilst receiving unemployment or invalidity benefits.
§ Mr. RossiAttendance allowance is payable under section 173 of the Local Government Act 1972 in recognition of the work that councillors undertake; it counts as earnings for national insurance purposes, and class 1 contributions are payable if the lower earnings limit for contributions is reached. Travelling and subsistence allowances are payable separately, under section 174 of that Act, and do not count as earnings. Other expenses reasonably incurred in connection with a council duty, if not reimbursed by the local authority, may be deducted from the attendance allowance when the earnings to be taken into account are determined.
The purpose of unemployment benefit is to provide a substitute for earnings when people are out of work. It is not payable for any day on which a claimant does gainful work from which his earnings exceed a limit, which has today been raised from 75p to £2. If a councillor does not claim attendance allowance he may still be entitled to unemployment benefit, provided he remains available for work.
Invalidity benefits are paid not for illness or disablement, as such, but only when illness or disablement causes a person to be incapable of work. Generally speaking, anyone who is working is not entitled to invalidity benefit. Exceptionally, where the independent adjudicating authorities are satisfied that the work is therapeutic and the net weekly earnings do not exceed £16.50, the claimant may be deemed to be incapable of work.