§ Mr. FlynnTo ask the Secretary of State for Social Security what amount was recouped by the Compensation Recovery Unit in its first 19 months of operation; what this was as an annual rate; what was the estimate of the annual rate made by Touche Ross in its report to the DSS in 1987, adjusted for inflation; and what was the estimate of this figure made by the Government when the 1989 Bill was introduced, adjusted for inflation.
§ Miss WiddecombeBetween September 1990 and March 1992 the compensation recovery unit recouped over £29 million, rising to over £32 million by April 1992. Further rises are expected. In annual terms receipts were equivalent to about £15 million in the first 19 months, or over £25 million in 1991–92.
In introducing the new legislation the Government used the 1987 figures compiled by Touche Ross as a broad indication of the likely level of receipts. The consultants estimated that once all cases subject to the old arrangements had been settled and if a small payment limit —SPL— of £1,500 was set, the value of recoverable benefits under a new scheme would probably range up from about £37 million—about £51 million at March 1992 prices. This forecast was subsequently revised downwards when a higher SPL of £2,500 was introduced for the commencement of the scheme.
§ Mr. FlynnTo ask the Secretary of State for Social Security what were the running costs of the compensation recovery unit by the end of 1991; and what these costs were as a percentage of the receipts of that unit for the same period.
§ Mr. BurtThe administrative costs of the compensation recovery unit from its inception in early 1990 until the end of 1991 were £3.8 million including start-up costs, or about 19 per cent. of total receipts. During the financial year 1991–92 running costs were £2 million or about 8 per cent. of total receipts. This percentage is expected to fall further over the next few years as receipts rise much faster than running costs.