Mr Major’s Written Parliamentary Answer on Invalidity Benefit – 19 November 1985

Below is the text of Mr Major’s written Parliamentary Answer on Invalidity Benefit on 19th November 1985.

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Mr. Clay Asked the Secretary of State for Social Services what will be the total cost of (a) paying a 7 per cent. increase in invalidity benefit to all invalidity pensioners and (b) paying a 7 per cent. increase to all other social security beneficiaries, broken down by category.

Mr. Major I assume that the hon. Member is referring to the cost of this month’s uprating, when the great majority of benefits will increase by 7 per cent. Invalidity benefit will, however, increase by 11.8 per cent. because of the restoration of the 5 per cent. abatement introduced in 1980.

The total net cost of this uprating of invalidity benefit is about £170 million in a full year. The figure takes account of the restoration of the abatement, the introduction by the Social Security Act 1985 of an offset between invalidity allowance and the additional component, and the effect on supplementary benefit entitlement.

The full year net costs of uprating other main benefits are:

Benefit | Cost in £ million

Retirement pension | 1,120

Widows’ benefits | 55

Unemployment benefit | 115

Sickness benefit | 20

Invalid care allowance | 1

Attendance allowance | 45

Severe disablement allowance | 20

Mobility allowance | 30

Industrial injuries benefits | 30

War pensions | 35

Maternity allowance | 15

Child benefit* | 100

One parent benefit | 10

Family income supplement* | 35

Supplementary benefits* | 230

Housing benefit* | —

Notes:

1. All figures are rounded

2. Benefits marked * increase by an amount different from seven per cent.

3. The cost of increasing supplementary benefit and housing benefit is reduced by the relatively higher uprating of other benefits.

The total cost of the uprating is about £2,050 million.