HC Deb 28 June 1990 vol 175 cc353-5W
Mr. Meacher

To ask the Secretary of State for Social Security (1) what were the November 1979 and April 1990 rates of benefit in cash, giving couple and single rates separately where appropriate, and showing the percentage change in real terms, using the RPI and Rossi indexes for(a) November 1979 to April 1990 and (b) November 1979 to September 1989 for (i) retirement pension, (ii) non-contributory retirement pension, (iii) unemployment benefit, (iv) sickness benefit, (v) maternity allowance, (vi) child benefit, (vii) one-parent benefit, (viii) industrial disablement benefit, (ix) industrial death benefit, (x) war disablement pension, (xi) war widow's pension, (xii) attendance allowance, higher and lower rate, (xiii) invalid care allowance, (xiv) severe disablement allowance, (xv) mobility allowance and (xvi) supplementary benefit and income support personal allowance for (1) those aged 16 and 17 years, (2) those aged 18 to 24 years and (3) persons aged over 25 years;

(2) if he will publish in the Official Report the (a) November 1979 and (b) April 1990 rates of benefit in cash, giving couple and single rates separately where appropriate, and showing (1) the percentage change in real terms, using the retail prices index and Rossi indexes as

Table: Comparison of benefit rates
November 1978 rates in cash November 1979 rates in cash November 1978 rates in April 1990 prices November 1979 rates in April 1990 prices April 1990 rates in cash Ratio of3 benefit to gross earnings November 1978 (per cent.) Ratio of benefit to gross earnings November 1979 (per cent.) Ratio of benefit to gross earnings April 1989 (per cent.) Percentage change November 1978 to April 1990 Percentage change November 1979 to April 1990 Percentage4 change between uprating periods November 1978–79 to April 1989–90
Retirement pension
Single person 19.50 23.30 47.52 48.38 46.90 26.9 27.0 20.5 -1.3 -3.1 5.4
Married couple 31.20 37.30 76.04 77.44 75.10 43.1 43.3 32.7 -1.2 -3.0 5.4
Unemployment benefit
Single person 15.75 18.50 38.38 38.41 37.35 21.8 21.5 16.3 -2.7 -2.8 3.8
Married couple 25.50 29.95 62.15 62.18 60.40 35.2 34.7 26.3 -2.8 -2.9 3.7
Sickness benefit
Single person 15.75 18.50 38.38 38.41 37.70 21.8 21.5 15.6 -7.0 -7.1 -0.7
Married couple 25.50 29.95 62.15 62.18 57.80 35.2 34.7 25.2 -7.0 -7.0 -0.7
Industrial disablement benefit 31.90 38.00 77.74 78.90 76.60 44.1 44.1 33.4 -1.5 -2.9 5.2
Industrial death benefit 20.05 23.85 48.86 49.52 46.90 27.7 27.7 20.5 -4.0 -5.3 2.5

appropriate for the period November 1979 to September 1989, (2) the percentage change in real terms, using the retail prices index and Rossi indexes as appropriate for the period November 1979 to April 1990, (3) the percentage change in relation to the increase in male average earnings in the period November 1979 to September 1989, and (4) the percentage change in relation to the increase in male average earnings in the period November 1979 to April 1990 for (i) retirement pension, (ii) non-contributory retirement pension, (iii) unemployment benefit, (iv) sickness benefit, (v) maternity allowance, (vi) child benefit, (vii) one-parent benefit, (viii) industrial disablement benefit, (ix) industrial death benefit, (x) war disablement pension, (xi) war widow's pension, (xii) attendance allowance, higher and lower rate, (xiii) invalid care allowance, (xiv) severe disablement allowance, (xv) mobility allowance and (xvi) supplementary benefit/ income support personal allowance for (a) 16 to 17 years old, (b) 18 to 24 years old and (c) persons aged 25 years plus.

Mrs. Gillian Shephard

[holding answer 15 June 1990]: I regret that it is not possible, on the basis of the information contained in the question, to provide the information requested in relation to the supplementary benefit and income support schemes. Nor, since September 1989 was not an uprating date, would it be appropriate to provide an analysis related to that date of the change in the value of the benefits listed.

The table therefore provides figures on the same basis as in the answer to a comparable question from the hon. Member which I gave on 20 December 1989, updated to April 1990. As I pointed out at that time, comparisons over the period in question are complicated by the change in 1983 from uprating partly based on forecasts of future inflation to upratings based on known movements in the retail prices index to the latest available date. Moreover, in November 1979 long-term benefit rates were increased by 2 per cent. more than forecast inflation to make up for the fact that the forecast underlying the 1978 uprating had proved 2 per cent. lower than the actual growth in earnings of 13.3 per cent. between November 1977 and November 1978. The table gives the figures requested in relation to both 1978 and 1979. The retail prices index has been used as this is the appropriate index for those benefits listed in the table. It also shows the change in the average real value of benefit between the uprating years November 1978 to November 1979, and April 1989 to April 1990.

November 1978 rates in cash November 1979 rates in cash November 1978 rates in April 1990 prices November 1979 rates in April 1990 prices April 1990 rates in cash Ratio of3 benefit to gross earnings November 1978 (per cent.) Ratio of benefit to gross earnings November 1979 (per cent.) Ratio of benefit to gross earnings April 1989 (per cent.) Percentage change November 1978 to April 1990 Percentage change November 1979 to April 1990 Percentage4 change between uprating periods November 1978–79 to April 1989–90
Maternity allowance
Single person 15.75 18.50 38.38 38.41 35.70 21.8 21.5 15.6 -7.0 -7.1 -0.7
Married couple 25.50 29.95 62.15 62.18 57.80 35.2 34.7 25.2 -7.0 -7.0 -0.7
Non-contributory retirement pension
Single person 11.70 14.00 28.51 29.07 28.20 16.2 16.2 12.3 -1.1 -3.0 5.5
Married couple 18.75 22.40 45.70 46.51 45.05 25.9 26.0 19.6 -1.4 -3.1 5.2
War disablement pension 31.90 38.00 77.74 78.90 76.60 44.1 44.1 33.4 -1.5 -2.9 5.2
War widows pension 25.55 30.45 62.67 63.22 60.95 35.3 35.3 26.7 -2.7 -3.6 5.5
Attendance allowance
Higher rate 15.60 18.60 38.02 38.62 37.55 21.5 21.6 16.4 -1.2 -2.8 5.4
Lower rate 10.40 12.40 25.35 25.75 25.05 14.4 14.4 10.9 -1.2 -2.7 5.6
Invalid care allowance
Single person 11.70 14.00 28.51 29.07 28.20 16.2 16.2 12.3 -1.1 -3.0 5.5
Married person 18.75 22.40 45.70 46.51 45.05 25.9 26.0 19.6 -1.4 -3.1 5.2
Severe disablement allowance
Single person 11.70 14.00 28.51 29.07 28.20 16.20 16.2 12.3 -1.1 -3.0 5.5
Married couple 18.75 22.40 45.70 46.51 45.05 25.90 26.0 19.6 -1.4 -3.1 5.2
Mobility allowance1 10.00 12.00 24.91 24.91 26.25 13.8 13.9 11.4 5.4 5.4 12.3
Child benefit2 3.00 4.00 7.31 8.30 7.25 4.1 4.6 3.4 -0.8 -12.7 -4.1
One parent benefit 2.00 2.50 4.87 5.19 5.60 2.8 2.9 2.4 15.0 7.9 22.3
1 For mobility allowance, the initial uprating period is July 1979 to November 1979.
2 For child benefit, the initial uprating period is April 1979 to November 1979.
3 Average gross weekly earnings, all full-time workers on adult rates (Source: New Earnings Survey 1989—the latest available information). Interpolated by the seasonally adjusted monthly index of average earnings, all employees in industries and services (published by DE).
4 The percentage change between uprating periods is calculated as the percentage change in the average real value of benefits during the uprating period April 1989 to April 1990, as compared to the period November 1978 to November 1979.

Mr. Meacher

To ask the Secretary of State for Social Security when he expects to provide a substantive reply to the question regarding the value of benefits in 1979 and 1990 tabled for answer on 15 June.

Mrs. Gillian Shephard

I have replied to the hon. Member's question today.

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