§ Mr. WorthingtonTo ask the Secretary of State for Social Security (1) what are the major reasons for the increase in the amounts recovered by the compensation recovery unit between 1990–91 and 1993–94;
(2) if he will provide a breakdown of the main sources of income from the compensation recovery unit;
(3) from how many asbestosis victims the compensation recovery unit recovered money in 1993–94; and what were the amounts involved.
§ Mr. HagueThe administration of the compensation recovery scheme is a matter for Mr. Michael Bichard, the chief executive of the Benefits Agency. He will write to the hon. Member.
Letter from Michael Bichard to Mr. Tony Worthington, dated 14 July 1994:
The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Questions asking (a) the main sources of income for the Compensation Recovery Unit (b) from how many asbestosis victims the Compensation Recovery Unit recovered money in 1993–94 and (c) what are the major reasons for the increase in the amounts recovered by the Compensation Recovery Unit between 1990–91 and 1993–94.During the financial year 1993–94, £81.9 million was recovered by the Compensation Recovery Unit (CRU). The main sources of this income were as follows:
£ millions Benefit Amount Invalidity Benefit 35.2 Statutory Sick Pay 16.7 Industrial Injuries Disablement Benefit 9.2 Income Support 5.8 Reduced Earnings Allowance 5.5 Sickness Benefit 3.5 Disability Living Allowance 2.8 Mobility Allowance 1.1 The remaining £2.1 million was made up of the following benefits:Unemployment Benefit, Attendance Allowance, Constant Attendance Allowance, Retirement Allowance, Family Credit, Severe Disablement Allowance, Disability Working Allowance and Exceptionally Severe Disablement Allowance.During the same period the number of asbestosis cases where recovery was made by the CRU was 157 and the total amount recovered in relation to these cases was £408,665.There are two main reasons for the increase in the amounts recovered by the CRU between 1990–91 and 1993–94:firstly, the number of claims notified to the CRU has increased significantly over the years by some 49 per cent. since 1991; 800W secondly, the Compensation Recovery legislation only relates to accidents or diseases which occurred on or after 1 January 1989. Settlements which occurred in 1990–91 resulted in recovery of benefits which had been paid for one or two years only. As the more protracted claims come to settlement, up to five years of benefits are now being recovered.I hope you find this reply helpful.