HL Deb 17 February 1998 vol 586 cc34-7WA
Lord Morris of Manchester

asked Her Majesty's Government:

What would have been the extra costs to the Exchequer in each year from 1980–81 to 1996–97 of updating by the higher of average earnings or prices:

Gross cost of uprating benefits by the higher of earnings or prices
RP IVB/IB NCRP SDA WB GA/CSA AA/DLA IIDB
(£bn) (£bn) (£m) (£m) (£m) (£m) (£m) (£m)
1980–81 0.1 * * * 10 * * 10
1981–82 0.7 0.1 * 10 50 * 20 30
1982–83 0.9 0.1 * 10 70 * 20 10
1983–84 1 0.2 * 10 80 * 40 50
1984–85 1.8 0.3 10 30 130 * 70 50
1985–86 2 0.3 10 30 130 * 90 60
1986–87 3 0.5 10 50 170 * 140 90
1987–88 4.4 0.7 10 70 220 * 220 110
1988–89 5.2 0.9 10 90 240 * 290 130
1989–90 6.1 1.1 10 110 250 * 370 150
1990–91 6.8 1.3 10 140 270 * 450 170
1991–92 7.1 1.5 10 180 280 * 540 180
1992–93 8.3 1.9 10 210 310 * 810 200
1993–94 8.9 2.1 10 240 330 * 970 210
1994–95 9.2 2.4 10 280 330 * 1,140 230
1995–96 9.9 2.3 10 300 330 * 1,340 250
1996–97 10.1 2.3 10 320 330 * 1,470 240

Rate if increased by the higher of earnings or prices since 1980 in current prices
£ per week
RP IVB/IB NCRP SDA WB WA CSA AA/DLA IIDB
November 1979 23.30 23.30 14.00 14.00 23.30 32.60 7.10 18.60 38.00
November 1980 27.60 26.45 16.60 16.60 27.60 38.65 8.40 22.05 45.05
November 1981 30.90 29.60 18.60 18.60 30.90 43.30 9.40 24.70 50.45
November 1982 33.50 32.10 20.15 20.15 33.50 46.95 10.20 26.75 54.70
November 1983 36.40 34.90 21.90 21.90 36.40 51.05 11.10 29.10 59.45
November 1984 38.25 36.70 23.00 23.00 38.25 53.65 11.65 30.60 62.50
November 1985 41.60 41.60 25.00 25.00 41.60 58.30 12.65 33.25 67.95
July 1986 43.45 43.45 26.10 26.10 43.45 60.85 13.20 34.70 70.95
April 1987 45.90 45.90 27.55 27.55 45.90 64.25 13.95 36.65 74.90
April 1988 49.50 49.50 29.70 29.70 49.50 15.05 39.50 80.75
April 1989 53.90 53.90 32.35 32.35 53.90 16.40 43.00 87.95
April 1990 59.15 59.15 35.50 35.50 59.15 18.00 47.15 96.50
April 1991 65.60 65.60 39.35 39.35 65.60 19.95 52.30 107.00
April 1992 70.80 70.80 42.45 42.45 70.80 21.55 56.45 115.45
April 1993 74.25 74.25 44.55 44.55 74.25 22.60 59.20 121.10
April 1994 76.90 76.90 46.05 46.35 76.90 23.25 60.90 124.60
April 1995 80.00 80.00 47.90 48.20 80.00 24.20 63.35 129.60
April 1996 83.10 83.10 49.75 50.10 83.10 25.15 65.80 134.65
April 1997 86.60 86.60 51.85 52.20 86.60 26.20 68.55 140.30

Actual weekly benefit paid at April 1997 prices
£ per week
RP IVB/IB NCRP SDA WB WA CSA AA/DLA IIDB
November 1979 60.44 60.44 36.32 36.32 60.44 84.57 18.42 48.25 98.57
November 1980 61.08 58.49 36.67 36.67 61.08 85.48 16.87 48.70 99.66
November 1981 59.47 56.96 35.66 35.66 59.47 83.18 15.47 47.52 97.04
November 1982 62.11 59.47 37.25 37.25 62.11 86.88 15.03 49.63 101.35
November 1983 61.41 58.79 36.88 36.88 61.41 85.93 13.71 49.05 100.27
November 1984 61.52 58.86 36.95 36.95 61.52 86.10 13.15 49.15 100.36
November 1985 62.41 62.41 37.48 37.48 62.41 87.34 13.12 49.86 101.84
July 1986 62.03 62.03 37.27 37.27 62.03 86.87 12.90 49.61 101.30
April 1987 60.65 60.65 36.46 36.46 60.65 84.98 12.36 48.52 99.03
April 1988 60.79 60.79 36.56 36.56 60.79 12.41 48.68 99.28
April 1989 59.62 59.62 35.83 35.83 59.62 12.24 47.72 97.36

(a) retirement pensions; and (b) all other social security benefits that had been uprated on that basis until 1980; what the rates of payment for those benefits on that basis would have been in each year; and what was the actual rate in each year at 1996–97 prices. [HL210]

8. Baroness Hollis of Heigham

The information is set out in the tables.

Actual weekly benefit paid at April 1997 prices
£ per week
RP IVB/IB NCRP SDA WB WA CSA AA/DLA IIDB
April 1990 58.60 58.60 35.23 35.23 58.60 12.06 46.91 95.70
April 1991 61.06 61.06 36.70 36.70 61.06 11.39 48.91 99.70
April 1992 60.98 60.98 36.65 36.65 60.98 10.98 48.82 99.55
April 1993 62.36 62.36 37.46 37.46 62.36 10.89 49.91 101.83
April 1994 62.43 62.43 37.39 37.72 62.43 10.62 49.53 101.02
April 1995 61.73 61.73 36.98 37.29 61.73 10.33 48.99 99.97
April 1996 62.63 62.63 37.49 37.85 62.63 10.14 49.68 101.40
April 1997 62.45 62.45 37.35 37.75 62.45 9.90 49.50 101.10

Key to benefits:

Retirement Pension Basic (RP).

Non Contributory Retirement Pension (NCRP).

Severe Disablement Allowance (SDA).

Invalidity Benefit/Incapacity Benefit Short Term Higher Rate and Long Term (IVB/IB).

Widows Benefits (WB).

Guardians Allowance (GA) and Child Special Allowance (CSA).

Attendance Allowance (AA)/Disability Living Allowance (DLA).

Industrial Injuries Disablement Benefit (IIDB).

Notes:

1. Invalidity Benefit was replaced by Incapacity Benefit in April 1995.

2. Widows Allowance ceased in April 1988.

3. Attendance Allowance was replaced by Disability Living Allowance in April 1992 for people who became disabled before the age of 65.

4. The Retail Prices Index (all items) and the Average Earnings Index (whole economy) as produced by the Office of National Statistics was used in these calculations.

5. VAT on fuel was added in April 1994 at the rate of 50p single person for the following benefits: Retirement Pension, Widowed Mother's Allowance, Invalidity Benefit, Severe Disablement Allowance and 20p for single person for NCRP.

6. The abatement of 5 per cent. applied to Invalidity Benefit in 1980 and has also been included.

7. Costs are in 1996–97 prices, and have been rounded to the nearest £10 million where estimates are in millions and £0.1 billion where estimates are in billions.

* denotes less than £0.5 million where estimates are in millions and £0.05 billion for estimates in billions.

9. The earnings-link uprated benefit rates include the increases made to benefit rates on account of the introduction of VAT on fuel.

10. All costs are on a gross basis and do not include income-related benefit offsets.