§ Ms CorstonTo ask the Secretary of State for Social Security (1) what would have been the extra cost to the National Insurance Fund that would have arisen from uprating contributory invalidity benefit or incapacity benefit by the higher of average earnings or prices in each year since 1980–81; [15452]
(2) what the basic rate of invalidity benefit or incapacity benefit would have been in each year since 1980–81 if it had been uprated by the higher of average earnings or prices; and what was the actual rate for each of these years. [15453]
§ Mr. DenhamThe information is in the table.
Year Actual rate of basic invalidity benefit (incapacity benefit from April 1995)(£s per week) Rate if uprated by the higher of earnings of prices Estimated additional annual costs £s million 1980–81 26,00 26.45 5 1981–82 28.35 29.60 40 1982–83 31.45 32.10 60 1983–84 32.60 34.90 75 1984–85 34.25 36.70 160 1985–86 38.30 41.60 190 1986–87 38.70 43.45 325 1987–88 39.50 45.90 490 1988–89 41.15 49.50 650 1989–90 43.60 53.90 795 1990–91 46.90 59.15 925 1991–92 52.00 65.60 1,065 1992–93 54.15 70.80 1,335 1993–94 56.10 74.25 1,530 1994–95 57.60 76.40 1,645 1995–96 58.85 79.45 1,620 1996–97 61.15 82.55 1,575 1997–98 62.45 86.00 1.560 Notes:
- 1. In April 1995 invalidity benefit was replaced by incapacity benefit. The amounts shown are those for the long term rate of incapacity benefit.
- 2. Uprating indices used are the Retail Prices Index (all items) and the Average Earnings Index (whole economy) as supplied by the Office of National Statistics.
- 3. The uprated figures have been rounded to the nearest five pence.
- 4. Estimates of additional costs are:
- (i) rounded to the nearest £5 million,
- (ii) cover invalidity pension-basic incapacity benefit and adult dependency additions and invalidity allowance only (IVA was replaced by age additions in April 1995),
- (iii) converted to 1997–98 prices using the GDP deflator and take account of offsetting costs in the income related benefits using family expenditure survey data.
Source:
Analytical Services Division.