HC Deb 08 November 1995 vol 265 cc1025-6W
Mr. Heppell

To ask the Secretary of State for Social Security what extra administrative work is and has been necessary to deal with the change from invalidity benefit and sickness benefit to incapacity benefit; and what is the total cost of this extra administrative work. [41961]

Mr. Burt

The administration of Social Security benefits is a matter for Mr. Peter Mathison, the chief executive of the Benefits Agency. He will write to the hon. Member with such information as is available.

Letter from Peter Mathison to Mr. John Heppell, dated 8 November 1995: The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Question about what extra administrative work is and has been necessary to deal with the change from invalidity benefit and sickness benefit to incapacity benefit and what is the total cost of this extra administrative work. The additional administrative work in the period April—March 1994/95 included:

  1. 1. Recruitment—of 700 Doctors and Medical Advisers for the Independent Tribunal Service;
  2. 2. Training—of 40,000 District Office (DO) staff, 1,400 Doctors and 600 Benefits Agency Medical Services (BAMS) administrative staff;
  3. 3. Enhancements to DO computer systems and procedures;
  4. 4. Development and implementation of a new computer system for BAMS;
  5. 5. Development of procedures, forms and information leaflets related to the introduction of the new medical test;
  6. 6. Development of procedures and enhancement of computer systems for the deduction of income tax from IB.
The cost of this work amounted to £42 million. The additional administrative work in the period April-March 1995/96 includes:
  1. 1. The application of the new medical test;
  2. 2. The issue of the new Medical Questionnaire by DO staff;
  3. 3. Dealing with direct taxation of benefit. This is completely new to the BA and involves notifying the Inland Revenue of taxable benefit paid, tax deducted and providing the appropriate forms as necessary.
The cost of this additional work is expected to be £53 million for the financial year. I hope you find this reply helpful.