§ Mr. MeacherTo ask the Secretary of State for Social Security if he will list each of the measures announced in his uprating statement of 21 October, giving the gross cost or saving for each, and the net cost or saving net of other benefit expenditure, in 1992–93.
§ Miss Widdecombe[holding answer 5 November 1991]: As my right hon. Friend the Chancellor of the Exchequer announced earlier today, the increase in total expenditure on social security between 1991–92 and 1992–93 is planned to be some £5.5 billion.
Increases in rates for contributory and non-contributory benefits generally will be with reference to the September 1990 to September 1991 increase in the retail price index (RPI) and for income-related benefits with reference to the revised Rossi index which my right hon. Friend the Secretary of State, announced on 21 October. The cost of these increases over unchanged rates of benefit amounts to over £3 billion in 1992–93.
On 21 October my right hon. Friend the Secretary of State was also able to announce measures to extend or increase provision in 1992–93 in a number of important areas. The benefit costs of these are listed below (except in the case of the social fund, the difference between the net and gross costs is negligible and does not affect the figures given).
£ million Increase in income support premium for pensioners who are disabled or over 80 +57 Changes in attendance allowance/disabled living allowance giving additional benefit to people in voluntary hospices +2 Direct funding of hospices (through the Department of Health) +1 Social fund discretionary budgets (increase in gross budgets) +67 Minor measures to improve war pensions, severe disability allowance, disability living allowance, invalid care allowance provision and to provide protection for changes in the severe disability premium +10 Increased provision for independent living fund >1+23 Increases in income support limits for residential care +190 Note:
1 Subject to confirmation in the light of later information on caseload.
In reviewing the level of statutory sick pay my right hon. Friend the Secretary of State decided to increase the lower rate by RPI but not to increase the higher rate which goes to many people covered by occupational schemes. 153W The overall cost of this is £19 million less than if both rates were increased. He also announced a restructuring of the system for calculating the contributions which could be reasonably expected from non-householders living with those householders on income-related benefits. This would reduce the contribution expected from those on lower incomes and would increase the contribution expected from those with significant incomes from full-time work. The net effect would be to reduce benefit expenditure by £50 million.
The uprating statement also covered extra help in 1992–93 for disabled people through disability living allowance at a cost of £120 million and for the families of those in work, through the hours change in family credit and the introduction of a maintenance disregard, a t a net cost of £70 million.