HC Deb 20 October 1988 vol 138 cc991-3W
Mr. Alfred Morris

To ask the Secretary of State for Social Security if he will give the expenditure on industrial disablement benefit in 1978–79 and 1987–88 at 1987–88 prices; and if he will state the amount and proportion of the increased expenditure that was due to(a) increase in real value of the basic pension, (b) increase in number of beneficiaries and (c) other factors.

Mr. Scott

Expenditure on industrial disablement benefit (including special hardship allowance and its successor, reduced earnings allowance), at 1987–88 prices, is estimated to have been £448 million in 1978–79 and £449 million in 1987–88. Available information is that an increase of £22 million due to the real increase in average awards of benefit was offset by a decrease of £21 million due to a fall in the number of beneficiaries over the period.

Mr. Alfred Morris

To ask the Secretary of State for Social Security if he will give the expenditure on invalidity benefit in 1978–79 and 1987–88 at 1987–88 prices; and if he will state the amount and proportion of the increased expenditure which was due to(a) an increase in real value of the basic pension, (b) increased payments of additional component, (c) and increase in number of beneficiaries and (d) other factors.

Mr. Scott

Expenditure on invalidity benefit at 1987–88 prices grew from £1,705 million in 1978–79 to £2,985 million in 1987–88. Of this increase, £1,120 million (87 per cent.) was attributable to increased numbers of beneficiaries; and £160 million (13 per cent.) to a real increase in the average amount of benefit paid. This latter increase was the net result of £260 million growth in additional pension offset by £100 million attributable to the following changes in the other elements of invalidity benefit, including basic pension: adjustment of child dependancy increases to take account of child benefit; the 5 per cent, abatement of invalidity pension from November 1980 to September 1985; and the reduction of invalidity allowance in respect of any entitlement to additional pension.

Mr. Alfred Morris

To ask the Secretary of State for Social Security if he will give the expenditure on attendance allowance in 1978–79 and 1987–88 at 1987–88 prices; and if he will state the amount and proportion of the increased expenditure that was due to(a) an increase in real value of the allowance, (b) an increase in number of beneficiaries, (c) any change in the proportion of beneficiaries receiving the higher rate and (d) other factors.

Mr. Scott

At 1987–88 prices, expenditure on attendance allowance rose from £340 million in 1978–79 to £850 million in 1987–88. Of this increase, £475 million (93 per cent.) was attributable to increased numbers of beneficiaries and £35 million (7 per cent.) to a real increase in the average amount of benefit paid. This latter figure subsumes the expenditure consequences of a change in the proportion of higher rate allowances from 43 per cent, of total awards in December 1979 to 40 per cent, in March 1987.

Mr. Alfred Morris

To ask the Secretary of State for Social Security if he will give the expenditure on mobility allowance in 1978–79 and 1987–88 at 1987–88 prices; and if he will state the amount and proportion of the increased expenditure that was due to(a) the difference between the increase in the retail price index and the index of motoring costs, (b) and increase in the number of beneficiaries and (c) other factors.

Mr. Scott

Expenditure on mobility allowance, at 1987–88 prices, rose from £95 million in 1978–79 to £595 million in 1987–88. Of this increase, £400 million (80 per cent.) was attributable to increased numbers of beneficiaries; and £100 million (20 per cent.) to a real increase in the average amount of benefit paid. Any difference between the rise in the retail price index and motoring costs did not contribute directly to the increased expenditure.

Mr. Alfred Morris

To ask the Secretary of State for Social Security if he will give the expenditure on NCIP/severe disablement allowance in 1978–79 and 1987–88 at 1987–88 prices; and if he will state the amount and proportion of the increased expenditure that was due to(a) an increase in real value of the allowance, (b) an increase in the number of beneficiaries, (c) the change in the qualifying conditions and (d) other factors.

Mr. Scott

The expenditure on non-contributory invalidity pension, at 1987–88 prices, was £140 million in 1978–79. This benefit was replaced by severe disablement allowance and expenditure on the latter in 1987–88 was £305 million. Of this increase, £105 million (64 per cent.) was attributable to increased numbers of beneficiaries; and £60 million (36 per cent.) to a real increase in the average amount of benefit paid. I regret that detailed information is not readily available on which to base a reliable analysis of how far changes in the qualifying conditions or other factors contributed to these increases.

Mr. Alfred Morris

To ask the Secretary of State for Social Security if he will give the expenditure on invalid care allowance in 1978–79 and 1987–88 at 1987–88 prices; and if he will state the amount and proportion of the increased expenditure that was due to(a) an increase in real value of the allowance, (b) an increase in the number of beneficiaries and (c) other factors.

Mr. Scott

At 1987–88 prices, expenditure on invalid care allowance rose from £8 million in 1978–79 to £165 million in 1987–88. Of this, £22 million (14 per cent.) was attributable to a real increase in the average amount payable whilst £135 million (86 per cent.), attributable to increased numbers of beneficiaries, was largely the result of the extension of the allowance to married women in 1986.

Mr. Alfred Morris

To ask the Secretary of State for Social Security if he will give the expenditure on war disablement pension in 1978–79 and 1987–88 at 1987–88 prices; and if he will state the amount and proportion of the change in expenditure that was due to(a) an increase in real value of the basic pension, (b) a change in number of beneficiaries and (c) other factors.

Mr. Peter Lloyd

Estimated expenditure on war disablement pensions and allowances, including gratuities for disablement of less than 20 per cent, at 1987–88 prices, was £452 million in 1978–79 and £399 million in 1987–88. It is estimated that there was a reduction in expenditure of about £132 million, or 29 per cent., due to a reduction in the number receiving war pensions and allowances from 287,000 at December 1978 to 203,000 at December 1987. This was offset by an estimated increase in expenditure of about £79 million, or 17 per cent., due to an increase in the real value of the average war pension and allowances, mainly because of the introduction of a new allowance, mobility supplement, in 1983 and a 12 per cent, increase in the proportion of war pensioners receiving an age allowance.

Mr. Alfred Morris

To ask the Secretary of State for Social Security if he will give the expenditure on supplementary benefit (housing) paid to long-term sick and disabled people in 1978–79 and 1987–88 at 1987–88 prices; and if he will state the amount and proportion of the increased expenditure that was due to(a) an increase in real value of the benefits, (b) an increase in number of beneficiaries and (c)other factors.

Mr. Peter Lloyd

We do not keep records specifically of long-term sick and disabled people in receipt of supplementary benefit, only of people whose reason for claiming supplementary benefit was sickness. Information for 1978 and 1987 is not in any case comparable because of the introduction of the housing benefit scheme in 1982–83 which now provides help with rent and rates. The term "housing costs" in 1978 therefore includes rent and rates as well as mortgage interest, ground rent, and so on, whereas the term "housing costs" in 1987 excludes rent and rates.

The information available, based on the annual statistical inquiries, shows that the amount of housing costs included in the assessments of people claiming supplementary benefit because they were sick was £42 million in 1978 and £39 million in 1987. These figures do not reflect the amount actually paid in supplementary benefit for housing costs—this would have been less if the claimant had other income or had any dependent adults living in his household.

In 1987–88 housing benefit expenditure for people in receipt of supplementary benefit because of sickness amounted to some £200 million.