HC Deb 10 February 1997 vol 290 cc77-8W
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

[pursuant to his reply, 11 November 1996, c. 90]: 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 the higher of average earnings or prices are set out in the table:

Year Additional cost 1996–97 price £ million
1980–81 5
1981–82 35
1982–83 55
1983–84 65
1984–85 145
1985–86 175
1986–87 300
1987–88 450
1988–89 595
1989–90 730
1990–91 855
1991–92 985
1992–93 1,235
1993–94 1,420
1994–95 1,520

1. Estimates cover Invalidity Pension and adult dependency increases only.

2. Estimates rounded to nearest £5 million.

3. Estimates converted to 1996–97 prices using the GDP deflator.

4. Offsetting costs estimated using Family Expenditure Survey data.