§ Mr. BurstowTo ask the Secretary of State for Social Security what action he has taken to correct incorrect benefit payments; and how much was(a) recovered and (b) paid in compensation for each major benefit in (i) 1979–80, (ii) 1996–97 and (iii) the most recent figures available. [143103]
§ Angela EagleThe administration of benefits is a matter for Alexis Cleveland, the Chief Executive of the Benefits Agency. She will write to the hon. Member shortly.
Letter from Alexis Cleveland to Mr. Paul Burstow, dated 20 December 2000:
The Secretary of State for Social Security has asked me to respond to your recent Parliamentary Question asking what action he has taken to correct incorrect benefit payments; and how much was (a) recovered and (b) paid in compensation for each major benefit in (i) 1979–80, (ii) 1996–97 and (iii) the most recent figures available.When an error occurs prompt action is taken to correct the benefit payments due. If an overpayment of benefit has occurred, recovery action will be taken as appropriate. When there are arrears following an underpayment of benefit, our special payments unit consider a compensation payment in recognition of the fact that the customer has lost use of the sum owed because of the Departmental delay. The payment is calculated in the form of interest on the arrears of monies owed using the Average Retail Shares and Deposits rate supplied by the building Society Commission. The Department may additionally make a consolatory payment if the official error has had a direct adverse effect on the life of the customer. Further details about the Department's compensation scheme can be found in the guide to Financial Redress for Maladministration. A copy of the guide is kept in the House of Commons Library, and it is also available in the Publications section of the DSS internet site:www.dss.gov.ukInformation about recovers and compensation is not available in the format requested. However, the information which is available is in the attached tables.I hope this is helpful.
Table 1: Overpayment recoveries £ million 1996–97 1999–2000 Income Support (IS) 61.5 115.9 Jobseeker's Allowance (JSA) 0.0 5.0 Other Benefits 41.1 63.8 Total 102.6 184.7 Notes:
1. No data are available from 1979–90, there was no system at that time to count overpayments.
2. Jobseeker's Allowance was introduced during 1996–97, recoveries of overpayments in that year were less than £100,000.
3. Other benefits figures summarise all BA delivered benefits apart from IS and JSA.
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Table 2: Special payments1 £ Benefit 1996–97 1999–2000 Attendance Allowance 45,609 30,848 Child Benefit 105,822 73,917 Disability Living Allowance 396,251 157,713 Disability Working Allowance 15,434 25,955 Family Credit 125,053 160,565 Incapacity Benefit 57,333 334,781 Income Support2 36,017,170 41,974,908
Table 2: Special payments1 £ Benefit 1996–97 1999–2000 Industrial Death Benefit 2,613 0 Industrial Injuries Disablement Benefit 28,043 133,939 Invalid Care Allowance 90,352 156,446 Invalidity Benefit 260,662 30,633 Jobseeker's Allowance n/a 143,733 Maternity Allowance (inc. SMP) 110 7,702 Reduced Earnings Allowance 65,059 107,562 Retirement Pension 51,538,719 581,658 Severe Disablement Allowance 57,835 30,236 Sickness Benefit 29,772 1,375 Unemployment Benefit 70,724 0 Widows Benefit 283,764 136,390 Total 9,190,325 64,086,986 n/a = not available 1 No figures are available for 1979–80. 2 Jobseeker's Allowance was introduced on 7 October 1996 and replaced both Unemployment Benefit and Income Support for the unemployed. The figure displayed for Income Support payments made during 1996–97 may also include special payments made in respect of Jobseeker's Allowance, as discrete records were not maintained at that time. 3 Includes £4,747,031 paid under the Dorset Trust special exercises7. 4 Includes £406,338 paid by way of special exercises (IS bulletin 105/98). 5 Includes £275,092 paid by way of special exercise (Retirement LEAP exercise). 6 A further £2,518,462 was paid to certain recipients of Incapacity Benefit, Retirement Pension, Widows Benefit and Jobseeker's Allowance by way of compensation for delays arising from NIRS2 implementation. 7 A 'special exercise' occurs where a systemic failure affects a number of similar cases, delays in administration occur following introduction of new legislation, or defective legislation which does not reflect the intention of Ministers adversely affects a group of customers.