§ Mr. Gordon Brownasked the Secretary of State for Social Services if he proposes to introduce legislation (a) to offset invalidity allowance against the additional component and (b) to introduce a common earnings rule for dependency additions to invalidity benefit.
§ Mr. NewtonYes. As I indicated on Second Reading of the Social Security Bill on 26 November at column 711–2, the necessary amendments will be put down for discussion at the Committee stage of that Bill.
§ Mr. Gordon Brownasked the Secretary of State for Social Services how many invalidity pensioners receive (a) no invalidity allowance, b) lower-rate invalidity allowance, (c) middle-rate invalidity allowance and (d) higher-rate invalidity allowance; how many in each category receive an earnings-related additional component with their invalidity pension; what, in each case, is the average additional component; and how many in each category receive an additional component which exceeds their invalidity allowance.
§ Mr. NewtonThe following table provides the information requested as at 2 April 1983, the latest date which information is available.
73WNotes:
- IVA = Invalidity Allowance
- IVB=Invalidity Benefit
- AC = Additional Component
§ Mr. Gordon Brownasked the Secretary of State for Social Services what he estimates to be the net savings from his proposal to offset invalidity allowance against the additional component; and what the savings would be but for the transitional arrangements for existing invalidity pensioners.
§ Mr. NewtonIt is estimated that the net savings in a full year in 1985–86 terms will be in the region of £25 million. Without transitional protection for existing beneficiaries, savings in the first year would amount to an estimated £50 million.
§ Mr. Gordon Brownasked the Secretary of State for Social Services whether transitional protection for existing invalidity pensioners, receiving both invalidity allowance and additional component, will preserve the real value or the cash value of their benefit.
§ Mr. NewtonThe transitional arrangements will provide for the cash value of invalidity benefit in payment to existing beneficiaries to be preserved when the proposed change is introduced.