HC Deb 15 February 1988 vol 127 c494W
Mr. Andrew Welsh

To ask the Secretary of State for Social Services if, pursuant to the statement by the Minister of State of 18 December 1987,Official Report, column 1376, he will now update the estimate of the total amount of underpayment due to the miscalculation of the retail prices index in relation to social security benefits; and what was the total amount actually paid out in special lump-sum payments during the week started 1 February.

Mr. Scott

It is estimated that the underspend on social security will be £109 million between April 1987 and April 1989. £98 million of this was allocated to the first stage of the special payments exercise, for those entitled to benefit during the week commencing 1 February. Not all these special payments will actually have been made during that week, as many beneficiaries are paid monthly or quarterly or will cash their order book foils for that week at a later date. Consequently, no firm figures for the total spending on this stage of the special payments will be known for several weeks. Special payments will also be made to people whose entitlement arises between 8 February and 8 October, and to certain categories of people whose losses on weekly benefit as a result of the error were significantly more than £8.

Mr. Andrew Welsh

To ask the Secretary of State for Social Services if, pursuant to the statement of 18 December 1987,Official Report, column 1376, he will explain the precise basis on which the figures of £8 and £7.85 were calculated in relation to the underpayment in benefit as a result of an error in computing the retail prices index.

Mr. Scott

I refer the hon. Member to my reply to the hon. Member for Dunfermline, East (Mr. Brown) on 10 February at column274.