HC Deb 30 January 1995 vol 253 cc520-1W
Mr. Alan Howarth

To ask the Secretary of State for Social Security (1) how many existing claimants of invalidity benefit transferring to incapacity benefit he estimates will fail the new test of incapacity(a) at a threshold score of 15 or (b) if the threshold score were reduced to (i) 14, (ii) 13, (iii) 12, (iv) 11 and (v) 10;

(2) how many existing claimants of invalidity benefit transferring to incapacity benefit he estimates will fail the new test of incapacity (a) in total and (b) in the age bands (i) 55 to 57, ii) 50 to 54, (iii) 45 to 49 and (iv) 40 to 44 years;

(3) what is his estimate of the cost of (a) setting the threshold score for incapacity benefit at 15 and (b) lowering the threshold score for eligibility to incapacity benefit to (i) 14, (ii) 13, (iii) 12, (iv) 11 and (v) 10;

(4) how many new claimants of incapacity benefit he estimates will fail the new test of incapacity (a) at a threshold score of 15 or (6) if the threshold score were reduced to (i) 14, (ii) 13, (iii) 12, (iv) 11 and (v) 10;

(5) how many new applicants for incapacity benefit he estimates will fail the new test of incapacity (a) in total and (b) in the age bands (i) over 58, (ii) 55 to 57, (iii) 50 to 54 (iv) 45 to 49 and (v) 40 to 44 years.

Mr. Hague

We estimate that in the next two years 220,000 existing invalidity benefit claimants will cease to be entitled to incapacity benefit earlier than they would under the current system due to the application of the new all work test. Around 55,000 new claimants each year who would have been entitled to invalidity benefit will be found capable of work under the new test. No information is available on a breakdown of these totals by age.

The threshold for benefit in the new test has been set at 15. It has been derived from the development work and set at the point where it would be unreasonable to expect someone to work. It would not be appropriate to set it at any other level. Accordingly we do not have estimates of the number of claimants who would be found capable if a lower threshold score was adopted and the associated costs.

Mr. Alan Howarth

To ask the Secretary of State for Social Security what is his estimate of the cost of passporting invalidity benefit recipients to incapacity benefit at the age of(a) 58, (b) 55 and (c) 50 years.

Mr. Hague

We estimate that the savings from applying the new all work test to exciting invalidity benefit recipients for the year 1995–96 is £140 million. This is on the basis that all claimants aged 58 and over who have been continuously in receipt of invalidity benefit since 1 December 1993 are exempt from the test as well as those who are terminally ill, those in receipt of the highest rate care component of disability living allowance and those suffering from certain specified severe and chronic illnesses. If all claimants aged 50 or over were exempt from the test on the same basis this amount would be reduced by £45 million. If all claimants aged 55 or over were exempt, the savings would be reduced by £15 million. In subsequent years the savings would be reduced by larger amounts.

Mr. Hood

To ask the Secretary of State for Social Security how many claimants in each category will have their entitlements reviewed in relation to the new incapacity benefit; and who will qualify for the new benefit, in both numerical and percentage terms.

Mr. Hague

[holding answer 27 January 1995]:. An estimated 1.8 million people will be receiving invalidity benefit by the time it is replaced by incapacity benefit on 13 April 1995. They will automatically qualify for the new benefit. Around half will be exempt from the new medical test of incapacity. Around 220,000 people are expected to be found capable of work in the first two years. We estimate that an additional 55,000 new claimants a year, who would have qualified for invalidity benefit under the current rules, will be found capable of work as a result of the new test.

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