HC Deb 12 November 1992 vol 213 cc904-21W
Mr. Robert B. Jones

To ask the Secretary of State for Social Security if he will set out the latest plans for expenditure on the social security programme including details on the new rates of benefits proposed for April 1993.

Mr. Lilley

Economic recovery means keeping public expenditure under control, while preserving capital programmes. Spending on social security, therefore, which comprises one third of total Government spending, must play its part in this. In his autumn statement to the House today my right hon. Friend the Chancellor of the Exchequer reported that expenditure on social security would be £79.8 billion in 1993–94, £82.9 billion in 1994–95 and £87 billion in 1995–96. These plans reflect the Government's manifesto commitments on retirement pension and child benefit. I have also made it a high priority to protect less well-off people by increasing all major benefits in line with prices, but I have also rigorously scrutinised my programme for areas where value for money can be improved.

Social security fraud

Efforts to tackle fraud and abuse of benefits will be stepped up. DSS fraud teams are already saving significant sums—nearly £500 million this year—and they will be improving their efficiency. Increasing use of computer technology will weed out false claims and ensure money goes only to bona fide recipients, who make up the vast majority.

These measures should save some £80 million extra from fraud in the first year, rising to £120 million by 1995–96. In addition, consultations will begin with the local authority associations about fresh incentives for local authorities to investigate fraud affecting housing benefit and the new council tax benefit.

From next April, I intend that local authorities will receive direct financial reward for their increased efforts to prevent payment of benefits to those not entitled to them. These incentives will benefit local finances, and also save the taxpayer as much as £180 million next year, on top of the fraud savings already made by local authorities. By taking these measures I hope the total of fraud identified and stopped will increase to nearly £1 billion each year.

Operational resources

There will be continued investment in information technology and further improvements in the Department's offices around the country. The public will receive a standard of service which continues to reflect my Department's full commitment to the aims of the citizens charter. Capital spending will increase by some £159 million over the next three years, bringing capital spending to over £1 billion in that period.

My programme to ensure best use of operational resources includes action to extend and encourage the use of automated credit transfer for the payment of benefits. This will improve the method of payment on offer and also save resources. In addition, my Department will be working with the Post Office to improve efficiency and to reduce theft and fraud involving order books and giros.

Uprating

The uprating of social security benefits will take place for most benefits, as usual, in the first full week of the tax year—which in 1993 will he the week beginning 12 April. I have reviewed social security benefits in accordance with section 150 of the 1992 Administration Act and my proposals are set out below. The statutory instruments to implement them will he laid before both Houses for debate. My right hon. and learned Friend the Secretary of State for Northern Ireland proposes to introduce similar changes for Northern Ireland. All the proposed new benefit rates are in the schedule.

The normal basis for uprating most benefits is the annual increase in the retail prices index up to September which this yeaer is 3.6 per cent.

Retirement pensions

Retirement pension, which is received by 10 million people, will rise next April in line with the RPI. The basic pension for a single person will be increased by £1.95 per week to £56.10 and for couples by £3.10 to £89.80. This uprating alone will cost the national insurance fund almost £1 billion next year. Public service pensions will be increased across the hoard by 3.6 per cent.

War pensions

War pensions will be uprated fully in line with prices.

The special Ministry of Defence payments to pre-1973 war widows, which are the responsibility of my right hon. and learned Friend the Secretary of State for Defence, will rise in line with the RPI from £46.18 to £47.84 per week.

There are two other proposals affecting the war pensions scheme.

I propose to introduce a threshold for claims for noise induced hearing loss, bringing the war pensions rules more into line with those for industrial injury awards. The effect will be that those with less than 20 per cent. disablement in respect of noise induced hearing loss will in future receive no award. We propose to use savings from that change to remove rank differentials in war disablement pensions.

As a result of these changes, almost 200,000 severely disabled ex-service men will gain up to an extra £5 per week. No existing war pensioner will suffer a reduction in the cash he or she is receiving.

The Central Advisory Committee on War Pensions will be consulted on the proposed changes.

Other benefits

All national insurance benefits will be increased by 3.6 per cent. Unemployment benefit for a single person will therefore rise from £43.10 to £44.65 per week and the rate for couples will rise from £69.70 to £72.20.

All disability benefits will also he uprated in line with prices. For example the disability living allowance care component at the higher rate will go up in April from £43.35 to £44.90 per week.

Child benefit will also be fully uprated in line with prices. The new rates of child benefit will be £10 for the first or eldest eligible child, and £8.10 for each subsequent child. One-parent benefit will also be increased to £6.05. The lower rate of statutory maternity pay will be increased from £46.30 to £47.95.

Sickness benefit and invalidity benefit will also be uprated by prices. For example, invalidity benefit for a single person will go up from £54.15 to £56.10 and for a couple from £86.70 to £89.80. I have been considering the operation of the statutory sick pay scheme—which now covers most short term sickness. The lower rate of statutory sick pay will rise in line with the RPI from £45.30 to £46.95. I judge however that an increase in the higher rate, which goes to employees earning more than £195 per week, would not be a sensible use of scarce resources, especially as most of these employees will already be working for employers who operate occupational sick pay schemes. I therefore propose to make no change in the higher rate of statutory sick pay next year.

Changes to invalidity benefit

There has been a significant increase in expenditure on invalidity benefit and in the numbers receiving it.

Since 1978–79, the caseload has more than doubled and the costs have risen by nearly 140 per cent. in real terms. By 1995–96, invalidity benefit will he costing well over £7 billion.

Against this background, in order to ensure that the benefit is focused on those for whom Parliament intended it, I plan to tighten up the administrative and medical control procedures from April 1993, operated by my Department. This will ensure that medical examinations are better targeted and that more effective action will be taken when people fail to attend for examination or are found capable of work. These changes are expected to reduce expenditure by £240 million over the survey period.

A major research study into IVB was launched in August 1991. Some results have been received and others will be received during 1993. I will consider these results carefully as they become available.

Income-Related benefits

Income-related benefits are normally uprated by the retail prices index less certain housing costs—the so-called Rossi index. This year the September—September increase in the Rossi index was the same as for the RPI, that is 3.6 per cent.

Premiums for income-related benefits for elderly people have been uprated twice in the past year as part of our policy to target benefits on the most vulnerable groups in society. From next April all the relevant income-related benefit allowances and premiums (eg for income support. housing benefit, family credit and disability working allowance) will rise by 3.6 per cent.: for council tax benefit the rates will be set at these new levels. This means for example that a pensioner couple aged 75 or more will receive an increase in income support from £94.60 per week to £98.00 and benefit for a single person over 25 will go up from £42.45 to £44.00

Earlier this year the Government introduced improvements to the arrangements in respect of non-dependant deductions which apply both to housing benefit and housing costs in income support. This year the three earnings thresholds which determine the appropriate level of deduction will increase by £5. However, the three lowest rates of deduction will not rise pro-rata but will remain at their present level, which will provide extra help to 295,000 households with lower paid non-dependants. The top rate deduction will increase by £3 a week from £18 to £21, which means a fairer contribution from those non-dependents with the most substantial income.

I have also taken the opportunity to raise the levels of the earnings thresholds for non-dependant deductions and second adult rebates in council tax benefit. This will bring further small gains to around 3,000 people liable to pay the council tax.

As foreshadowed in the social security benefits (uprating) statement made in October 1991, we will not reduce benefits to compensate for the removal of the minimum contribution to local taxes. This means a real increase in the disposable income of the least well off. For example, a single person aged 25 or over on income support will benefit by £1.60 per week, and a couple by £2.80 per week.

Social fund

Following my recent announcement of the allocation of an additional £8 million to the social fund discretionary budget in the current year, there will be a further substantial increase next year when I expect this budget to increase to around £340 million. This further large increase means that the budget will be 12 per cent. higher than at April 1992 and nearly 50 per cent. above its 1991 level.

These increases have been made possible largely by the success of the loans system introduced in 1988 which enables more help to go to more people than would be possible if the same amount of taxpayers' money were only used for grants.

Residential care and nursing homes

From the 1 April next year, new residents requiring help with their care needs will be assessed by local authorities under the new community care arrangements. My right hon. Friend the Secretary of State for Health announced on 2 October the funding for the new arrangements including the transfer of funds from the Department of Social Security. The new limits I propose will therefore apply only to existing income support recipients in residential care and nursing homes, that is to say those with preserved rights to support under the present arrangements.

All the limits in residential care homes will he increased by £10 a week, including those for elderly people, mental illness, mental handicap and drug and alcohol abuse. This is well above the amount which a straight inflation increase would produce. I am also able to improve the relative amount given to the lowest limit—that for elderly people. I have done this in recognition of the increasing age and frailty at which people enter care.

I also propose to increase almost all the limits for nursing homes by £10 a week. The only exception is the limit referred to as the terminal illness limit. I propose instead to steer additional help to hospices.

Last year, my predecessor announced that additional funds of £1 million a year would be transferred from the social security budget to the NHS for the direct funding of hospices for each of the three survey years. I am pleased to announce a further £1 million transfer in 1993–94.

The personal expenses allowance will be increased fully in line with inflation to £12.65. The total annual cost of the increases will be over £100 million. This significant increase reflects this Government's continuing commitment to elderly and disabled people in residential or nursing care.

Other proposals

There are also some proposals for changes which involve only relatively small amounts of money, but will be welcomed by those helped. These fall into three main categories: measures which help disabled people; those for carers; and measures which mainly affect orphans.

First, disabled people. In income support, housing benefit and community charge benefit the severe disability premium is at present only available where the recipient is a disabled person on disability living allowance (DLA) or attendance allowance (AA) who is living independently or with someone who is also getting DLA/AA. From next year, I intend to extend eligibility to those who cannot get it now because they live with a person, and that person is registered blind.

More resources will be given to Motability, the charity which arranges the provision of vehicles for disabled people. Their success has meant a 15 per cent. increase in business in the last year and this trend is projected to increase into the future. My Department will increase its core funding for Motability's administrative costs in line with this expansion—taking our total funding to £2.8 million in 1995–96. In addition I intend to increase on an ongoing basis the Mobility Equipment Fund which allows Motability to make charitable donations to customers who require very expensive vehicle adaptations which they cannot afford. From April 1 intend to double the amount of money available to £2 million and place the grant on a three year basis thereby replacing the existing arrangement where our funding is re-considered every year. This will assist their financial planning.

I intend to give £45,000 per annum to the British Limbless Ex-Servicemen's Association to assist them with the provision of specialised car components, eg gearboxes, for arm amputee war pensioners.

For carers, I intend to introduce two measures next April. The first would increase from £40 to £50 the amount which recipients of invalid care allowance can earn before losing their benefit. This is further to last year's increase which raised the ceiling from £30 to £40. The second will introduce into income support, housing benefit and council tax benefit a carers' earnings disregard of £15. Those people who presently qualify for an earnings disregard of less than £15 and who are entitled to the carer premium will now be able to earn up to £15 a week without losing any of their income related benefit. Both of these measures will help many carers who wish to keep in touch with the world of work, as well as giving them valuable additional cash.

Finally, I am pleased to announce changes which will provide significant extra help for two groups of people who, in difficult personal circumstances, take responsibility for bringing up children whose parents have died.

Guardian's allowance will be ignored in family credit, housing benefit, council tax benefit and disability working allowance.

Those who have to bring up a child on their own will be able to receive one-parent benefit in addition to guardian's allowance. At present—following a commissioner's decision—these benefits can only be paid together if the child whose parents have died is not the eldest child in the new family. Both these changes will be implemented from 1993.

Schedule of main proposed Social Security Benefit Rates from April 1993
(weekly rates unless otherwise shown)
Attendance Allowance
Old rates 1992 New rates 1993
Higher rate 43.35 44.90
Lower rate 28.95 30.00
Child Benefit
Old rates 1992 New rates 1993
Only, elder or eldest for whom child benefit is payable 9.65 10.00
Each subsequent child 7.80 8.10
Child's Special Allowance
Old rates 1992 New rates 1993
See note on Child Dependency Increase 10.85 10.95
Council tax benefit
Old rates 1992 New rates 1993
Personal allowances
single
18 to 24 33.60 34.80
25 or over 42.45 44.00
lone parent—18 or over 42.45 44.00
couple—one or both over 18 66.60 69.00
dependent children
under 11 14.55 15.05
11 to 15 21.40 22.15
16 to 17 25.55 26.45
18 33.60 34.80
Premiums
family 9.30 9.65
lone parent 10.60 10.95
pensioner
single 16.70 17.30
couple 25.35 26.25
pensioner (enhanced)
single 18.65 19.30
couple 28.00 29.00
pensioner (higher)
single 22.75 23.55
couple 32.55 33.70
disability
single 17.80 18.45

Old rates 1992 New rates 1993
couple 25.55 26.45
severe disability
single 32.55 33.70
couple (one qualifies) 32.55 33.70
couple (both qualify) 65.10 67.40
disabled child 17.80 18.45
carer 11.55 11.95
Allowance for personal expenses for claimants in hospital
higher rate 13.55 14.05
lower rate 10.85 11.20
Non-dependent deductions aged 18 or over and in remunerative work
gross income: £105.00 or more 2.00 2.00
gross income: up to £104.99 1.00 1.00
others, aged 18 or over 1.00 1.00
Alternative maximum council tax benefit
second adult on Income Support (per cent.) 25
second adult's gross income:
up to £105 (per cent.) 15
£105.01 to £135 (percent.) 7.5
Capital
upper limit 16,000.00 16,000.00
amount disregarded 3,000.00 3,000.00
child's limit 3,000.00 3,000.00
Tariff income
£1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit
Earnings disregards
where disability premium awarded 15.00 15.00
various specified employments 15.00 15.00
lone parent 25.00 25.00
where the claimant has a partner 10.00 10.00
single claimant 5.00 5.00
where carer premium awarded 0.00 15.00
Other income disregards
maintenance disregard 15.00 15.00
war disablement pension and war widow's pension 10.00 10.00
voluntary and charitable payments 10.00 10.00
student loan 10.00 10.00
student's covenanted income 5.00 5.00
income from boarders:
disregard the fixed amount (£20) plus 50 per cent, of the balance of the charge 20.00 20.00
Expenses for subtenants
furnished or unfurnished 4.00 4.00
where heating is included, additional 8.60 8.60
Dependency increases
Old rates 1992 New rates 1993
Adult Dependency Increases
For spouse or person looking after children, with:
retirement pension on own insurance, invalidity pension, unemployability supplement and, if beneficiary over pension age, unemployment benefit 32.55 33.70
non-contributory retirement pension, invalid care allowance and severe disablement allowance 19.45 20.15
sickness benefit if beneficiary over pension age 31.20 32.30

Old rates 1992 New rates 1993
unemployment benefit 26.60 27.55
maternity allowance/sickness benefit 25.50 26.40
Child Dependency Increases For each child, with:
retirement pension, widows benefit, invalidity benefit, invalid care allowance, severe disablement allowance, higher rate industrial death benefit, unemployability supplement and sickness/ unemployment benefit if beneficiary over pension age 10.85 10.95

Note: The Overlapping Benefits Regulations provide for the rate of child dependency increases, guardinan's allowance and child special allowance to be adjusted where the increase or allowance is payable for the eldest eligible child for whom child benefit is also payable. The weekly rate of the increase or allowance is reduced by the differential (less the 75p derived from the October increase in child benefit) between the rate of child benefit payable for the oldest eligible child and that payable for a subsequent child.

Disability Living Allowance
Old rates 1992 New rates 1993
Care component
Highest 43.35 44.90
Middle 28.95 30.00
Lowest 11.55 11.95
Mobility component
Higher 30.30 31.40
Lower 11.55 11.95
Disability Working Allowance
Old rates 1992 New rates 1993
Adult allowance
Single people 42.40 43.95
Couples/Lone parents 58.80 60.95
Child allowance
Under 11 10.40 10.75
11 to 15 17.25 17.85
16 to 17 21.45 22.20
18 29.90 31.00
Applicable amount (ie taper threshold)
Single people 39.95 41.40
Couples/Lone parents 66.60 69.000
Capital
Upper limit 16,000.00 16,000.00
Amount disregarded 3,000.00 3,000.00
Child's limit 3,000.00 3,000.00
Tariff income
£1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit
Disregards
Maintenance disregard 15.00 15.00
War disablement pension and war widow's pension 10.00 10.00
Voluntary and charitable payments 10.00 10.00
Student loan 10.00 10.00
Student's covenanted income 5.00 5.00

Old rates 1992 New rates 1993
Income from boarders:
Disregard the fixed amount (£20) plus 50 per cent, of the balance of the charge 20.00 20.00
Expenses for subtenants
Furnished or unfurnished 4.00 4.00
Where heating is included, additional 8.60 8.60
Earnings Rules
Old rates 1992 New rates 1993
Invalid Care Allowance 40.00 50.00
Unemployment Benefit (daily rate) 2.00 2.00
Unemployment Benefit (maximum weekly amount) 54.00 56.00
Therapeutic earnings limit 40.50 42.00
Industrial injuries unemployability supplement permitted earnings level (annual amount) 2,106.00 2,184.00
War pensioners' unemployability supplement permitted earnings level (annual amount) 2,106.00 2,184.00
Adult dependency increases with sickness benefit where claimant is
(a) under pension age 25.50 26.40
(b) over pension age 31.20 32.30
maternity allowance 25.50 26.40
unemployment benefit where claimant is
(a) under pension age 26.60 27.55
(b) over pension age 32.25 33.70
retirement pension, invalidity pension, severe disablement allowance, unemployability supplement where dependant
(a) is living with claimant 43.10 44.65
(b) still qualifies for the tapered earnings rule 45.09 45.09
retirement pension, invalidity pension and unemployability supplement where dependant not living with claimant 32.55 33.70
severe disablement allowance where dependant not living with claimant 19.45 20.15
invalid care allowance 19.45 20.15
Child dependency increases
level at which CDIs payable with long-term benefits are affected by earnings of claimant's spouse or partner
for first child 115.00 120.00
for each subsequent child 15.00 16.00

Family credit
Old rates 1992 New rates 1993
Adult credit 41.00 42.50
Child credit
under 11 10.40 10.75
11 to 15 17.25 17.85
16 to 17 21.45 22.20
18 29.90 31.00
Applicable amount (ie taper threshold) 66.60 69.00
Capital
upper limit 8,000.00 8,000.00
amount disregarded 3,000.00 3,000.00
child's limit 3,000.00 3,000.00
Tariff income
£1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit
Disregards
maintenance disregard 15.00 15.00
war disablement pension and war widow's pension 10.00 10.00
voluntary and charitable payments 10.00 10.00
student loan 10.00 10.00
student's covenanted income 5.00 5.00
income from boarders:
disregard the fixed amount (£20) plus 50 per cent, of the balance of the charge 20.00 20.00
Expenses for subtenants furnished or unfurnished 4.00 4.00
where heating is included, additional 8.60 8.60
Guardian's allowance
Old rates 1992 New rates 1993
See note on Child Dependency Increase 10.85 10.95
Hospital downrating
Old rates 1992 New rates 1993
20 per cent, rate 10.85 11.20
40 per cent, rate 21.70 22.40
Housing Benefit
Old rates 1992 New rates 1993
Personal allowances
single
16 to 24 33.60 34.80
25 or over 42.45 44.00
lone parent
under 18 33.60 34.80
18 or over 42.45 44.00
couple
both under 18 50.60 52.40
one or both over 18 66.60 69.00
dependent children
under 11 14.55 15.05
11 to 15 21.40 22.15
16 to 17 25.55 26.45
18 33.60 34.80

Old rates 1992 New rates 1993
Premiums
family 9.30 9.65
lone parent 10.60 10.95
pensioner
single 16.70 17.30
couple 25.35 26.25
pensioner (enhanced)
single 18.65 19.30
couple 28.00 29.00
pensioner (higher)
single 22.75 23.55
couple 32.55 33.70
disability
single 17.80 18.45
couple 25.55 26.45
severe disability
single 32.55 33.70
couple (one qualifies) 32.55 33.70
couple (both qualify) 65.10 67.40
disabled child 17.80 18.45
carer 11.55 11.95
Allowance for personal expenses for claimants in hospital
higher rate 13.55 14.05
lower rate 10.85 11.20
Non-dependant deductions rent rebates and allowances aged 25 and over, in receipt of Income Support aged 18 or over, not in work or gross income under £70 4.00 4.00
gross income: £70 to £104.99 8.00 8.00
gross income: £105 to £134.99 12.00 12.00
gross income: £135 or more 18.00 21.00
Service charges for fuel
heating 8.60 8.60
hot water 1.05 1.05
lighting .70 .70
cooking 1.05 1.05
Amount ineligible for meals three or more meals a day single claimant 15.20 15.75
each person in family aged 16 or over 15.20 15.75
each child under 16 7.65 7.95
less than three meals a day single claimant 10.10 10.45
each person in family aged 16 or over 10.10 10.45
each child under 16 5.05 5.25
breakfast only—claimant and each member of family 1.85 1.90
Capital
upper limit 16,000.00 16,000.00
amount disregarded 3,000.00 3,000.00
child's limit 3,000.00 3,000.00
Tariff income
£1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit

Old rates 1992 New rates 1993
Earnings disregards
where disability premium awarded 15.00 15.00
various specified employments 15.00 15.00
lone parent—not in receipt of IS 25.00 25.00
where the claimant has a partner 10.00 10.00
single claimant 5.00 5.00
where carer premium awarded .00 15.00
Other income disregards maintenance disregard 15.00 15.00
war disablement pension and war widow's pension 10.00 10.00
voluntary and charitable payments 10.00 10.00
student loan 10.00 10.00
student's covenanted income 5.00 5.00
income from boarders:
disregard the fixed amount (£20) plus 50 per cent, of the balance of the charge 20.00 20.00
Expenses for subtenants furnished or unfurnished 4.00 4.00
where heating is included, additional 8.60 8.60
Income support
Old rates 1992 New rates 1993
Personal allowances
single
under 18—usual rate 25.55 26.45
under 18—higher rate payable in specific circumstances 33.60 34.80
18 to 24 33.60 34.80
25 or over 42.45 44.00
lone parent
under 18—usual rate 25.55 26.45
under 18—higher rate payable in specific circumstances 33.60 34.80
18 or over 42.45 44.00
couple
both under 18 50.60 52.40
one or both over 18 66.60 69.00
dependent children
under 11 14.55 15.05
11 to 15 21.40 22.15
16 to 17 25.55 26.45
18 33.60 34.80
Premiums
family 9.30 9.65
lone parent 4.75 4.90
pensioner
single 16.70 17.30
couple 25.35 26.25
pensioner (enhanced)
single 18.65 19.30
couple 28.00 29.00
pensioner (higher)
single 22.75 23.55
couple 32.55 33.70

Old rates 1992 New rates 1993
disability
single 17.80 18.45
couple 25.55 26.45
severe disability
single 32.55 33.70
couple (one qualifies) 32.55 33.70
couple (both qualify) 65.10 67.40
disabled child 17.80 18.45
carer 11.55 11.95
Maximum amounts for accommodation and meals in residential care homes old age 175.00 185.00
very dependent elderly 205.00 215.00
mental disorder (not handicap) 185.00 195.00
drug/alcohol dependence 185.00 195.00
mental handicap 215.00 225.00
physical disablement
(a) (under pension age) 245.00 255.00
(b) (over pension age) 175.00 185.00
others 175.00 185.00
maximum Greater London increase 25.00 25.00
nursing homes
mental disorder (not handicap) 270.00 280.00
drug/alcohol dependence 270.00 280.00
mental handicap 275.00 285.00
terminal illness 280.00 280.00
physical disablement
(a) (under pension age) 305.00 315.00
(b) (over pension age) 270.00 280.00
others (including elderly) 270.00 280.00
maximum Greater London increase 35.00 35.00
Amounts for meals where these cannot be purchased within the accommodation (Daily Rate)
breakfast 1.10 1.10
midday meal 1.55 1.55
evening meal 1.55 1.55
Allowances for personal expenses for claimants in
private and voluntary residential care and nursing homes personal expenses 12.20 12.65
dependent children
(a) under 11 5.00 5.20
(b) 11 to 15 7.35 7.60
(c) 16 to 17 8.50 8.80
(d) age 18 12.20 12.65
hospital
higher rate 13.55 14.05
lower rate 10.85 11.20
local authority (Pt III)
accommodation 10.85 11.20
the Polish home Ilford Park max amount for accommodation and meals 175.00 185.00
personal expenses for claimant 16.15 16.75
personal expenses for partner 16.15 16.75
personal expenses for dep children
(a) under 11 5.00 5.20
(b)11 to 15 7.35 7.60
(c) 16 to 17 8.50 8.80
(d) 18 14.50 15.00

Old rates 1992 New rates 1993
Housing costs
Deduction for non-dependants aged 25 and over, in receipt of income support aged 18 or over, not in work or
gross income under £70 4.00 4.00
gross income: £70 to £104.99 8.00 8.00
gross income: £105 to £134.99 12.00 12.00
gross income: £135 or more 18.00 21.00
Deduction for direct payments arrears of housing, fuel and water costs and fines default 2.15 2.20
arrears of community charge court order against claimant 2.15 2.20
court order against couple 3.35 3.45
Child maintenance and arrears of
Council Tax (planned from April 1993) 2.20
Maximum rates for recovery of overpayments
ordinary overpayments 6.45 6.60
where claimant convicted of fraud 8.60 8.80
Reduction in benefit for strikers 22.50 23.50
Capital
upper limit 8,000.00 8,000.00
amount disregarded 3,000.00 3,000.00
child's limit 3,000.00 3,000.00
Tariff income
£1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit
Disregards
standard earnings 5.00 5.00
higher earnings 15.00 15.00
war disablement pension and war widow's pension 10.00 10.00
voluntary and charitable payments 10.00 10.00
student loan 10.00 10.00
student's covenanted income 5.00 5.00
income from boarders:
disregard the fixed amount (£20)plus 50 per cent, of the balance of the charge 20.00 20.00
Expenses for subtenants
furnished or unfurnished 4.00 4.00
where heating is included, additional 8.60 8.60
Industrial death benefit
Old rates 1992 New rates 1993
Widow's pension
higher rate 54.15 56.10
lower rate 16.25 16.83
Industrial disablement pension
Old rates 1992 New rates 1993
18 and over, or under 18 with dependants
100 per cent. 88.40 91.60
90 per cent. 79.56 82.44
80 per cent. 70.72 73.28
70 per cent. 61.88 64.12
60 per cent. 53.04 54.96
50 per cent. 44.20 45.80
40 per cent. 35.36 36.64
30 per cent. 26.52 27.48
20 per cent. 17.68 18.32

Old rates 1992 New rates 1993
Under 18
100 per cent. 54.15 56.10
90 per cent. 48.74 50.49
80 per cent. 43.32 44.88
70 per cent. 37.91 39.27
60 per cent. 32.49 33.66
50 per cent. 27.08 28.05
40 per cent. 21.66 22.4
30 per cent. 16.5 16.3
20 per cent. 10.3 11.2
Maximum life gratuity (lump sum) 5,870.00 6,080.00
Unemployability Supplement 54.15 56.10
plus where appropriate an increase for early incapacity
higher rate 11.55 11.95
middle rate 7.20 7.50
lower rate 3.60 37.5
Maximum reduced earnings allowance 35.36 36.64
Maximum retirement allowance 8.84 9.16
Constant attendance allowance
exceptional rate 70.80 73.40
intermediate rate 53.10 55.05
normal maximum rate 35.40 36.70
part-time rate 17.70 18.35
Exceptionally severe disablement allowance 35.40 36.70
Invalidity allowances and benefits
Old rates 1992 New rates 1993
Invalid care allowance 32.55 33.70
Invalidity benefit
Invalidity pension 54.15 56.10
Invalidity allowance
higher rate 11.55 11.95
middle rate 7.20 7.50
lower rate 3.60 3.75
Maternity and parent benefits
Old rates 1992 New rates 1993
Maternity allowance 42.25 43.75
One parent benefit 5.85 6.05
Pneumoconiosis, byssinosis, workmen's compensation (supplementation) and other schemes
Old rates 1992 New rates 1993
Total disablement allowance and major incapacity allowance (maximum) 88.40 91.60
Partial disablement allowance 32.55 33.70
Unemployability supplement 54.15 56.10
plus where appropriate increases for early incapacity
higher rate 11.55 11.95
middle rate 7.20 7.50
lower rate 3.0 3.5

Old rates 1992 New rates 1993
Constant attendance allowance
exceptional rate 70.80 73.40
intermediate rate 53.10 55.05
normal maximum rate 35.40 36.70
part-time rate 17.70 18.35
Exceptionally severe disablement allowance 35.40 36.70
Lesser incapacity allowance
maximum rate of allowance 32.55 33.70
based on loss of earnings over 43.35 44.90
Retirement Pension
Old Rates 1992 New Rates 1993
Category A or B 54.15 56.10
Category B (lower)—husband's insurance 32.55 33.70
Category C or D—non-contributory 32.55 33.70
Category C (lower)—non-contributory 19.45 20.15
Additional pension
Increments to basic and additional pension, contracted out deductions (from pre April 1988 earnings) and graduated retirement benefit
Contracted out deductions (CODS) and increments to CODS (from post April 1988 earnings) (3 per cent. paid by scheme, RPI minus 3 per cent. by state)
Graduated retirement benefit (unit) (pence) 7.09 7.35
Addition at age 80 0.25 0.25
Severe disablement allowance
Old rates 1992 New rates 1993
Basic rate 32.55 33.70
Age-related addition (from December 1990)
Higher rate 11.55 11.95
Middle rate 7.20 7.50
Lower rate 3.60 3.75
Sickness benefit
Old rates 1992 New rates 1993
Over pension age 51.95 53.80
Under pension age 41.20 42.70
Social fund
Old rates 1992 New rates 1993
Maternity payment 100.00 100.00
Capital limit
aged under 60 500.00 500.00
aged 60 and over 1,000.00 1,000.00

Statutory maternity pay
Old rates 1992 New rales 1993
Earnings threshold 54.00 56.00
Lower rate 46.30 47.95
Statutory sick pay
Old rates 1992 New rates 1993
Earnings threshold 54.00 56.00
Standard rate threshold 190.00 195.00
Lower rate 45.30 46.95
Standard rate 52.50 52.50
Unemployment Benefit
Old rates 1992 New rates 1993
Over pension age 54.15 56.10
Under pension age 43.10 44.65
Occupational pension abatement 35.00 35.00
War pensions
Old rates 1992 New rates 1993
Disablement pension (100 per cent. rates)
private or equivalent 89.00 92.20
non-commissioned officer .00 93.00
officer (£ per annum) 4,650.00 5,081.00
Note.—Under the further package of changes, which are to be discussed with the Central Advisory Committee on War Pensions the rates would be:—
private or equivalent 89.00 97.20
officer (£ per annum) 4,650.00 5,072.00
Age allowances
40–50 per cent. 6.25 6.50
over 50 but not over 70 per cent. 9.65 10.00
over 70 but not over 90 per cent. 13.80 14.30
over 90 per cent. 19.30 20.00
Disablement gratuity (base figures for calculation purposes only)
specified minor injury 5,870.00 6,080.00
unspecified minor injury 3,228.50 3,344.00
Unemployability allowance
personal 57.50 59.55
adult dependency increase 32.55 33.70
(a) increase for first child 9.75 9.80
(b) increase for subsequent children 10.85 10.95
Invalidity allowance
higher rate 11.55 11.95
middle rate 7.20 7.50
lower rate 3.60 3.75
Constant attendance allowance
exceptional rate 70.80 73.40
intermediate rate 53.10 55.05
normal maximum rate 35.40 36.70
part-time rate 17.70 18.35
Comforts allowance
higher rate 15.20 15.70
lower rate 7.60 7.85

Old rates 1992 New rates 1993
Mobility supplement 33.70 34.90
Allowance for lowered standard of occupation (maximum) 35.36 36.64
Exceptionally severe disablement allowance 35.40 36.70
Severe disablement occupational allowance 17.70 18.35
Clothing allowance (£ per annum)
higher rate 120.00 124.00
lower rate 76.00 79.00
Education allowance (£ per annum) (maximum) 120.00 120.00
War widow's pension (private)
widow 70.35 72.90
childless widow under 40 16.25 16.83
age allowance
(a) age 65 to 69 8.05 8.35
(b) age 70 to 79 15.55 16.10
(c) age 80 and over 23.10 23.95
children's allowance
(a) increase for first child (adjusted for child benefit increase) 13.75 13.85
(b) increase for subsequent children 14.85 15.00
Orphan's pension
(a) increase for first child (adjusted for child benefit increase) 15.30 15.45
(b) increase for subsequent children 16.40 16.60
Unmarried dependant living as spouse (maximum) 68.30 70.85
Rent allowance (maximum) 26.80 27.75
Adult orphan's pension (maximum) 54.15 56.10
Widower's pension (maximum) 70.35 72.90
Widow's Benefit
Old Rates 1992 New Rates 1993
Widow's payment (lump sum) 1,000.00 1,000.00
Widowed mother's allowance 54.15 56.10
Widow's pension standard rate 54.15 56.10
age-related
age 54 (49) 50.36 52.17
age 53 (48) 46.57 48.25
age 52 (47) 42.78 44.32
age 51 (46) 38.99 40.39
age 50 (45) 35.20 36.47
age 49 (44) 31.41 32.54
age 48 (43) 27.62 28.61
age 47 (42) 23.83 24.68
age 46 (41) 20.04 20.76
age 45 (40) 16.25 16.83

Note: For deaths occurring before 11 April 1988 refer to age-points shown in brackets.