HC Deb 10 May 2004 vol 421 cc136-8W
Mr. Goodman

To ask the Secretary of State for Work and Pensions what estimate he has made of the number of incapacity benefit claimants covered by the new incapacity benefit pilot projects in(a) 2003–04 and (b) 2004–05. [170459]

Maria Eagle

[holding answer 4 May 2004]: We have projected that there will he approximately 14,000 new claims for incapacity benefits (Incapacity Benefit and Income Support on the grounds of incapacity) in the pilot areas during 2003–04, and 65,0001 during 2004–05. The pilots will continue to the end of 2005–6 when we estimate that there will be approximately 66,000 new claims.

In addition, all the pilot provision is available to existing incapacity benefit recipients in the pilot areas, numbering approximately 193,000. Their participation is currently on a voluntary basis. 1The number of pilots. in 2004–05 will increase from three to seven, hence the higher projection of new claims.

Mr. Goodman

To ask the Secretary of State for Work and Pensions what estimate he has made of possible savings generated by the new incapacity benefit pilot projects in each year from 2004–05 to 2008–09. [170460]

Maria Eagle

[holding answer 4 May 2004]: One of the purposes of the incapacity benefit pilot projects is to establish whether there is scope for savings to support further re-investment in this and other Government priority areas. We believe that the pilots have the potential to generate savings which will outweigh the projected pilot costs of approximately £40 million a year. However there has been limited previous success in this area on which to make a firm assessment of the financial implications.

The primary purpose of our agenda for reform of incapacity benefits is to help considerably greater numbers of those with health conditions and disabilities to achieve their aspirations to return to employment and to avoid long-term incapacity.

Mr. Goodman

To ask the Secretary of State for Work and Pensions what estimate he has made of the cost of extending the new incapacity benefit pilot projects to all incapacity benefit claimants. [170461]

Maria Eagle

[holding answer 4 May 2004]We estimate that the cost for a full year at national level of the provision now available to new claimants in the incapacity benefit reform pilots Ind the additional provision for existing recipients announced in the recent Budget and due to be introduced early next year, would be of the order of £700 million–£800 million.

Mr. Goodman

To ask the Secretary of State for Work and Pensions what estimate he has made of ('a) the startup costs and(b) the annual running costs of the new incapacity benefit pilot projects, broken down by cost of (i) personal advisers, (ii) the new return to work credit, (iii) condition management courses and (iv) other costs. [170462]

Maria Eagle

[holding answer 4 May 2004]: The startup costs for the Incapacity Benefit Reform Pilots were all incurred in the 2003–04 financial year and amounted to £6,137,080.

The unconfirmed running costs for the Incapacity Benefit Reforms Pilots during 2003–04 are shown as follows and the latest estimates for the running costs from 2004 to 2006 are as outlined:

£
2003–04 2004–05 2005–06
Personal advisers 625,895 3,020,839 3,160,150
Return to Work Credit 248,560 5,594,400 9,038,400
Condition Management Programme 887,500 8,651,211 8,202,00
Other costs 3,577242 22,733,550 19,599,450

The figures for the Personal Advisers also include some costs for processing Incapacity Benefit which cannot be separated out.

The majority of the 'other1 costs given above consist of estimated funding to help customers find and maintain employment, either directly through, for example, New Deals, Work Based Learning for Adults and Access to Work, in-work support and the adviser discretionary fund, or indirectly through better medical assessments, training and evaluation of the project.

These costs do not include the additional provision for existing clients announced in the recent Budget.