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Invalidity Benefit

Volume 167: debated on Wednesday 14 February 1990

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To ask the Secretary of State for Social Security in respect of a man who becomes entitled to invalidity benefit at the age of 60 years in each of the tax years 1990–91, 2000–01, 2010–11, and 2020–21, after having paid full class 1 contributions in each prior tax year from 1978–79, what he estimates will be (a) the maximum and average amounts of such a man's invalidity benefit, including invalidity allowance and additional pension at 1989–90 prices, (i) if clause 4 of the Social Security Bill is enacted, (ii) if the present position remains unchanged, (b) the corresponding amounts of retirement pension such a man will receive at normal retirement date if he remains on invalidity benefit until that date and then retires and (c) the corresponding amounts of widow's pension the widow of such a man will receive if he dies on the day after he becomes entitled to invalidity benefit and she is eligible for a widow's pension.

[holding answer 13 February 1990]: The right hon. Member's question calls for calculations relating to circumstances which would occur infrequently. Furthermore, projections of the average amounts of invalidity benefit for the circumstances stated are not available. The figures set out in the final column therefore relate to the entitlement of a man on average male earnings in each year from 1978–79, with assumptions about earnings growth in the future. In 1987–88, the latest year for which information is available, the average amount of additional pension payable to a 60-year-old man newly entitled to invalidity benefit was £13·64 per week. This compares with a figure of £20·16 which results from the application of average male earnings over the period since 1978–79. Invalidity allowance is not payable for men aged 60 or over when incapacity begins.The information is as follows:

(a) (i) Invalidity benefit under clause 4 proposals1–4
Year becoming entitled to IVBMaximum amount (£)Amount based on average male earnings (£)
1990–9190·9777·45
2000–0198·9583·75
2010–1186·8075·00
2020–2182·2571·85
BoltonNorth Western RegionEngland
YearNumber of nursesWhole-time equivalentsNumber of nursesWhole-time equivalents
198833133331676,8783,514
1987105210895,7522,983
198695175834,9562,501
198584152744,3922,211
198483121613,8911,924
19837393493,2841,657

(a) (ii) Invalidity benefit under present arrangements1–4

Year becoming entitled to IVB

Maximum amount (£)

Amount based on average male earnings (£)

1990–9190·9777·45
2000–01128·95109·95
2010–11125·60110·90
2020–21131·60118·25

(b) Retirement pension1–4

Year reaching age 65

Maximum amount (£)

Average amount (£)

1995–9696·1581·30
2005–06131·75111·95
2015–16132·60116·75
2025–26139·10124·75

(c) Widows pension1,2,4,5

Year of entitlement

Maximum amount (£)

Average amount (£)

1990–9190·9777·45
2000–0186·2576·80
2010–1184·6077·25
2020–2187·6080·95

1 All figures at 1989–90 prices.

2 All amounts include the standard rate of invalidity pension, retirement pension or widows pension as the case may be (£43·60); to the extent that there is entitlement to increase for dependants these amounts will increase by £26·20 for an adult and £8·95 for each child.

3 Maximum amount assumes earnings at the upper earnings limit in each year from 1978–79.

4 Average amount assumes average male earnings in each year from 1978–79. The figures assume real earnings growth of 1½ per cent, per year.

5 Amounts of widows pension, assume the widow is aged 55 or over and no guaranteed minimum pension in payment.