HC Deb 16 November 1998 vol 319 cc397-8W
Mr. Field

To ask the Secretary of State for Social Security if he will list by income bands of £10 and by gender the numbers of gainers and losers classified by each change proposed in "Support for Disabled People". [58122]

Mr. Timms

[holding answer 3 November 1998]: The information is not available in the format requested. In particular it is not possible to identify the position in the income distribution of those who will be affected by the changes using income bands of £10. Such information as is available is as follows:

Incapacity Benefit We estimate that around 55,000 men and 10,000 women will be affected by the proposed changes to Incapacity Benefit in the first year following the change (2001–02). The vast majority of those who no longer qualify for Incapacity Benefit as a result of the proposed change to the contribution conditions are expected to be in the first and second quintiles of the household income distribution and to be already claiming income-based Jobseeker's Allowance or Income Support. Their entitlement to these benefits will not be affected by this change and some may benefit from the proposed Disability Income Guarantee. The remainder of those who will no longer qualify for Incapacity Benefit will be people who are not entitled to income-based Jobseeker's Allowance or Income Support because they have other income. They are expected to be predominantly in the middle of the household income distribution. We expect that the majority of those who will have their Incapacity Benefit reduced as a result of taking some account of occupational and personal pensions over £50 a week will be in the top two quintiles of the household income distribution. Both these changes will apply only to new claims for Incapacity Benefit. No-one who is already receiving Incapacity Benefit at the point of change will be affected.

Severe Disablement Allowance We estimate that around 5,000 women and 3,000 men under 20 will gain by receiving the long-term rate of Incapacity Benefit at the end of the first year following the change. In addition. around 12,000 women and 8,000 men under 20 who were claiming Severe Disablement Allowance at the point of change will transfer to the long-term rate of Incapacity Benefit at the end of the first year. People aged 20 or over who are already receiving Severe Disablement Allowance at the point of change will continue to receive the benefit, but no new claims from people aged 20 or over will be accepted. We estimate that around 10,000 women and 6,000 men aged 20 or over will no longer be able to claim Severe Disablement Allowance in the first year following the change. We estimate that, of those, around 6,000 women and 5,000 men will qualify for Income Support and will therefore see no change in their overall income. The 4,000 women and 1,000 men whom we estimate will not qualify for Income Support are expected to be concentrated in the middle of the household income distribution.

Disability Income Guarantee We estimate that around 51,000 single men, 51,000 single women and 43,000 couples aged under 60, together with 30,000 disabled children, will benefit from this change in the first year (2001–02). We expect that the majority of those who benefit will be in the second and third quintiles of the household income distribution.

Disability Living Allowance We estimate that around 8,000 disabled children with severe mobility problems will benefit in the first year (2001–02) from our proposal to extend the higher rate mobility component of Disability Living Allowance to children aged 3 and 4. It is not possible to identify where the families concerned fall within the household income distribution.

Notes:

  1. 1. Income quintiles are 20 per cent. bands of household net equivalised income. The first quintile is the lowest band; the fifth quintile is the top band.
  2. 2. Position in the income distribution is determined after housing costs and represents the expected position before the changes come into effect.
  3. 3. Incomes are equivalised to adjust for household size and compositions. No adjustment is made to household income to reflect any additional needs that claimants of these benefits may have. To the extent that these people have any additional disability related costs then their position in the household income standard could overstate their relative living standards.
  4. 4. The information showing where recipients of various benefits are in the income distribution is taken from the 1995–96 and 1996–97 Households Below Average Income datasets based on the 1995–96 and 1996–97 Family Resources Surveys (FRS). The FRS is a sample survey of the GB population and all estimates must be treated as approximate.
  5. 5. Information on the number of claimants likely to be affected by each of the proposed changes is derived from the Income Support Quarterly Statistical Enquiry, February 1998; the Disability Living Allowance Quarterly Extract, February 1998; and a I per cent. sample of 1996–97 claims for Incapacity Benefit and Severe Disablement Allowance produced by DSS Analytical Services Division. All figures are estimates and must be treated as approximate.

Mr. Field

To ask the Secretary of State for Social Security what estimate he has made of the number of claimants who will lose eligibility to the severe disablement allowance under his proposals set out in "Support for Disabled People"; and if he will break down this total between male and female claimants. [58301]

Mr. Timms

It is estimated that each year, around 16,000 people who become disabled after the age of 20 will no longer be able to claim Severe Disablement Allowance. Of these approximately 10,000 will be women and 6,000 will be men. For those eligible, Income Support will still be available; current statistical data indicate that nearly 70 per cent. of this group already claim Income Support.