§ Mr. Alfred MorrisTo ask the Secretary of State for Social Security if he will make a statement on the reasons for the corrections to his answers to the right hon. Member for Manchester, Wythenshawe of 11 November,Official Report, column 90 and of 4 December,Official 681W Report, columns714–15 in respect of disability benefits; and if he will update his answers to include figures for the year 1995–96. [16780]
§ Mr. Burt[holding answer 25 February 1997]: The estimates of the additional costs of uprating invalidity benefit, including invalidity allowance, in line with the higher of earnings or prices in my replies of 11 November 1996, Official Report, column 90 and 4 December 1996, columns 714–15, did not take account of the fact that between November 1980 and November 1985, the rate of basic invalidity pension was abated by 5 per cent. in lieu of taxation and that an equivalent abatement applied to the rates of invalidity allowance between November 1980 and November 1981.
The revised estimates in my answers of 10 February, Official Report, columns78–79were based on the assumption that such an abatement would not have applied if the link with earnings had been maintained.
The estimates also incorporated refined calculations, based on information that had not been originally available, of the offsetting savings arising from fewer claims to income-related benefits.