§ Mr Alfred MorrisTo ask the Secretary of State for Social Security what were the savings to his Department in 1995–96 of ending the link between disability benefits and annual earnings at current prices. [16782]
§ Mr. Burt[holding answer Tuesday 25 February 1997]: The information is in the table.
The link between the benefit uprating and earnings was broken in 1980 to ensure that long-term provision for the sick and disabled should be sustainable.
Expenditure savings 1995–96 £ million Incapacity benefit 1,495 Invalidity allowance/age addition 80 Attendance allowance/disability living allowance 1,335 NCIP/severe disablement allowance 105 Invalid care allowance 105 Notes:
1.Estimates are rounded to nearest £5 million.
2.Estimates converted to 1996–97 prices using GDP deflator.
3.Estimates take account of offsetting costs in the income related benefits.
4.Disability living allowance includes the higher and middle rate care components. The mobility components and lowest rate of care component have been excluded from the calculation as they were never linked to earnings.
Source:
Analytical Services Division.