HC Deb 06 July 1992 vol 211 cc84-5W
25. Mr. Robert Ainsworth

To ask the Secretary of State for Social Security what have been the total savings in expenditure that have accrued from the various changes made to national insurance benefits since 1979.

Miss Widdecombe

Between 1978–79 and 1991–92, expenditure on national insurance benefits has grown by around £ 6 billion in real terms. The costs and savings which have accrued from the main policy changes to national insurance benefits since 1979 are set out in the table.

Financial year

introduced

Cash effect1 Cash effect

(1992–93 prices)

Unemployment benefit abatement for occupational/personal pension reduced from age 80 to 65 1988–89 -63 -80
Weekly earnings rule introduced for UB 1989–90 -49 -50
UB "full extent normal" —;ce minimis provision 1989–90
"Actively seeking work" test for UB 1989–90
Abolition of pensioners earnings rule 1989–90 375 450
Widows: revised entitlement conditions for women widowed before April 1988 1988–90 13 20
Statutory sick pay: amendment of rates and higher/lower rate threshold 1990–91 -72 -80
Invalidity benefit: revised RMO procedures 1991–91 -8 -10
Statutory sick pay: higher rate freeze/change in threshold 1991–92 -108 -110
Statutory sick pay: 80% reimbursement 1991–92 -181 -190
Statutory sick pay: reimbursement at 100% for small employers 1991–92 3 3
1 Figures shown represent the initial estimates of the effect on national insurance benefit expenditure only in the first full year following implementation. No account is taken of the impact on the changes on administration costs, income tax and national insurance revenues or expenditure on income-related benefits, other than as shown in note 2.
2 Amounts shown represent the net effect on N.I. benefit expenditure after employees' recoveries from contributions to the N.I. Fund in respect of payments of statutory sick pay and statutory maternity pay to their employees.