§ Mr. WebbTo ask the Chancellor of the Exchequer if he will estimate the amount which has been paid by his Department since April 1998 in compensation for delays to payment of age-related rebates of national insurance contributions arising from problems with the NIRS2 computer system. [92482]
§ Dawn Primarolo[holding answer 22 July 1999]: Responsibility for the NIRS computer system transferred from the Department of Social Security to the Inland Revenue on 1 April 1999.
The estimate for the amount of additional payments, since April 1998, for delays to payment of age-related rebates of national insurance contributions arising from problems with the NIRS2 computer system is £32.7 million.
§ Mr. WebbTo ask the Chancellor of the Exchequer if he will estimate the final total cost to the Exchequer of the problems associated with the N1RS2 computer system. [92483]
§ Dawn Primarolo[holding answer 22 July 1999]: Responsibility for the NIRS2 computer system transferred from the Department of Social Security to the Inland Revenue on 1 April 1999.
702WThe estimated cost of additional payments to 1 July 1999 is £34.686 million. This includes additional payments to Pension Providers for the delay in the payment of age related rebates (£32.7 million).
Other additional payments (£76,000) have been made to individuals and corporate customers in relation to minor difficulties they have encountered with NIRS2.
Compensation paid to benefit recipients by the Department of Social Security amounted to £1.85 million at 1 July 1999.
Costs associated with contingency processing plans, contingency arrangements and the provision of information have been met from the existing administration budgets of both the DSS and IR.
The present programme of work, to deal with backlogs, is intended to avoid the need for such payments or keep them to a minimum.