HC Deb 11 November 1996 vol 285 c90W
Mr. Alfred Morris

To ask the Secretary of State for Social Security what have been the annual savings to his Department in constant prices of ending the link between disability benefit and average earnings. [1417]

Mr. Burt

The link between invalidity benefit and earnings was broken in 1980 to ensure that long-term provision of benefit based on incapacity should be sustainable.

The additional costs which would have been incurred had invalidity benefit been increased by average earnings are set out in the table.

Year Additional cost 1996–97 prices £ million
1980–81 5
1981–82 35
1982–83 45
1983–84 55
1984–85 110
1985–86 125
1986–87 205
1987–88 315
1988–89 410
1989–90 505
1990–91 595
1991–92 685
1992–93 860
1993–94 985
1994–95 1,055
  1. 1. Estimates cover invalidity pension and adult dependency increases only.
  2. 2. Estimates rounded to nearest £5 million.
  3. 3. Estimates converted to 1996–97 prices using the GDP deflator.
  4. 4. Other benefit offsets estimated using family expenditure survey data.