§ Mr. CarringtonTo ask the Secretary of State for Social Security under what circumstances compensation will be paid in recognition of delays in payments of benefits.
§ Mr. LilleyRedress for the citizen when things go wrong is at the heart of the citizens charter. I am therefore pleased to announce a significant improvement to my Department's arrangements for compensation payments when benefit claims have been excessively delayed. The new arrangements will take effect for all new claims paid from 1 April 1993.
Until now, compensation was only considered when the delay in payment of benefit in new claims was at least 12 months. I am now proposing to reduce this period. In future, compensation will be considered where a new claim is delayed for six months beyond the target set for clearing the hulk of claims usually between 85 per cent. and 95 per cent. This will meet points which I know have been of increasing concern to the Parliamentary Commissioner for Administration in cases which he has been investigating.
The effect will be to bring forward the date from which compensation may be paid and to link this date explicitly with the performance targets set for the Benefits Agency. In the case of income support, for example, where the relevant target in the BA business plan is to clear 90 per cent. of claims in 13 working days, compensation would be considered after around seven months from the date of entitlement, compared with 12 months today. No change will be made in respect of war pensions or industrial disability benefits, where the effect of the new formula would be to extend the current 12-month period.
The other criteria against which compensation is considered will remain the same: namely that the delay must be caused by official error and the arrears of benefit due must be £50 or more.
I recognise, however, that the improvement I am announcing today will be too late for those people who claimed disability living allowance last year and suffered unacceptable delays before receiving payment of the benefit. In view of the exceptional problems following the introduction of DLA a special compensatory payment will be made to those people who:
- (i) made a new claim for DLA, attendance allowance or mobility allowance on or after 3 February 1992;
- (ii) were paid benefit before 1 April 1993; and
- (iii) suffered a delay in the payment of benefit of more than eight months.
The payment to this particular group of people will be at the rate of £10 per month for each month in excess of the eight-month period. The Benefits Agency is making the necessary arrangements to ensure that the payments are made as soon as possible. The agency will assess the amounts of compensation without the need for claims for compensation from customers. The task should be completed in the autumn.