§ Sir Brian MawhinneyTo ask the Secretary of State for Social Security (1) what plans he has to pay interest to widows who have not received their full pension entitlement on time as a result of computer problems; [53450]
(2) for how long the computer which regulates the payment of widow's pensions has been operating at less than 100 per cent. efficiency; and if he will estimate for how long this is likely to continue; [53447]
(3) how many widows have not received their full pension entitlement (a) at all and (b) on time as a result of computer problems; and if he will estimate in each case how many more are likely to be resolved. [53449]
§ Mr. DenhamThe administration of Widow's Benefit is a matter for Peter Mathison, the Chief Executive of the Benefits Agency. He will write to the right hon. Member.
Letter from Peter Mathison to Sir Brian Mawhinney, dated 30 July 1998:
The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Questions concerning computer problems and the payment of Widow's Pensions (WP).As a result of the modernisation of the Contributions Agency (CA)'s National Insurance Recording System (NIRS) it was necessary to switch off the existing system to enable the transfer of information to the new one to take place. Payable rates of Widows Benefits (WB) are calculated by the NIRS.The special payments scheme includes provision for compensation where the payment of benefit is exceptionally delayed due to official error. Compensation is considered where, the amount owed to the widow exceeds £100; payment of WB is delayed by 756W more than 4 months and the potential compensation is £10 or more (compensation is calculated using the Average Shares rate supplied by the Building Societies Commission). Compensation is automatically considered where these criteria are satisfied therefore the widow does not need to apply for it.The computer migration began on 19 June 1998 and it is planned that NIRS will resume providing WB calculations from 1 September 1998. All claims will be looked at retrospectively once calculations are available. The correct rate of WB will be put into payment and any arrears which are due will be paid.The exact number of widows who have not received their full entitlement to WB as a result of not being able to obtain the payable rates from the NIRS computer is not known. Approximately 48,000 women a year qualify for WB and of these it is estimated about 38,000 (730 a week) qualify for WP or Widowed Mother's Allowance (WMA) in addition to the widows payment.Between 6 April 1998 and 19 June 1998, NIRS was not able to supply the full payable rates in respect of all the estimated 300 new claims a week entitled to WP or WMA. Payment on these claims is being made on the 'safe' information provided by NIRS. Where appropriate clerical calculations of the widow's entitlement can be made and to date 208 calculations have been performed.Since 20 June 1998 NIRS has not provided any payable rates. For women widowed after this date arrangements are in force to make emergency payments at a basic rate plus increases for children. There will be very few, if indeed any, women who are entitled to WB but who do not receive emergency payments. This includes the £1,000 lump sum widows payment.The CA and the Benefits Agency are committed to minimising the impact on customers.I hope you find this reply helpful.