§ Mr. LeggTo ask the Secretary of State for Social Security what changes he proposes to the war pensions scheme following his consultations with the Central Advisory Committee on War Pensions on 26 November 1996; and if he will make a statement. [13845]
298W
§ Mr. LilleyThe general response of committee members was that the proposals represented a sensible and balanced approach. A warm welcome was given to some of the proposals, but there was concern about a small number. After full consideration of all comments, I have decided to proceed with the package, with some modification to reflect the consultation. My right hon. Friend Lord MacKay of Ardbrecknish is writing today to committee members with details of our decision.
The final form of the proposed changes to war widow's and war disablement pensions, to be implemented from 7 April 1997, is as follows:
War Widow's Pension
I intend to expand the categories of automatic entitlement to a war widow's pension. From April a war widow's pension will be awarded where the late husband was in receipt of unemployability supplement, and was assessed as at least 80 per cent. disabled due to service at the time of his death. Payment for funeral expenses will be made in the same circumstances.
A war widow's pension, which ceases on the start of cohabitation, will be restored following the cessation of cohabitation, bringing the position for cohabitees into line with that for those who remarry.
Because of the extension of restoration, war widows gratuities, currently payable when a widow remarries or starts to cohabit, are no longer appropriate and will no longer be payable.
Following representation, we will not proceed with the original proposal to abolish war widow's rent allowance for new claims.
War Disablement Pension
I intend to abolish rank differences in war disablement gratuities. The new rates will be based on those previously appropriate to an army major or equivalent.
I also intend to abolish the lower rate of clothing allowance. All payments will be made at the equivalent of the current higher rate.
I intend to introduce minimum disablement gateways for new claims to certain supplementary allowances which may be paid with the basic war disablement pension. For war pensioners mobility supplement and the allowance for lower standard of occupation the threshold will be set as proposed at 40 per cent. For unemployability supplement the threshold will be at 60 per cent., rather than the 80 per cent. originally proposed.
New awards of the allowance for lower standard of occupation and unemployability supplement will be restricted to those aged under 65 at the date of claim. Existing recipients of these allowances will not be affected by the proposed changes.
First payment for all awards of pension and allowances will be made from the first day of entitlement, rather than at present where some are made from that day, and others from the start of the first pay week following.
On backdating of awards, I intend to introduce the changes as originally proposed, with the exception of the maximum limit applying where the claimant's health had prevented him claiming earlier, or where the unavailability of classified papers has prevented an earlier 299W claim, or where the Ministry of Defence had overlooked arrangements to forward papers on invaliding or death in service to this Department, or where there had been a change of medical opinion or legal interpretation. We had originally proposed a maximum limit for backdating of one year prior to the date of claim in such cases. Following representation, we now propose to set the limit at three years.
The War Pensions Agency will also introduce the following changes to the administration of claims to war widow's and war disablement pensions.
The agency will cease issuing reminders to return claim forms, but will keep our procedures under review to ensure that no potential pensioner is left in doubt about the importance of returning claim forms promptly. But, following representation that it would have an adverse effect on the ability of ex-service organisations to conduct their business, the agency will not proceed with the proposal to cease issuing copies of decisions to third parties who were involved in making the claim.
The agency also will cease the issue of four-yearly continuation notices in cases which attract a long-term interim assessment. Pensioners will still be clearly told to let the War Pensions Agency know if their condition changes, and that it is possible to review assessments.
When seeking a review of their assessment, pensioners will in the first instance normally be asked to provide evidence that they have sought medical treatment or advice for their disablement since they were last assessed. The pensioner will not have to prove deterioration, simply show that there are grounds for carrying out a full review.
The changes to the original proposals are a direct result of the concerns expressed by members of the central advisory committee, and further improve the balance of a package which has found general approval. They will enable the War Pensions Agency to make savings on administration of around £1 million a year.
§ Mr. Malcolm BruceTo ask the Secretary of State for Social Security if he will estimate the cost to the Exchequer of applying a universal war pensions disregard in relation to the calculation of housing benefit and council tax benefit; and if he will make a statement. [13254]
§ Mr. Roger EvansI refer the hon. Member to the reply I gave the hon. Member for Sheffield, Attercliffe (Mr. Betts) on 29 November,Official Report, columns 415–16.