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Compensation Scheme

Volume 226: debated on Thursday 17 June 1993

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To ask the Secretary of State for Social Security if the clearance target used in the new compensation scheme, announced on 4 May, will be the target for the year the payment should have been made or the target for the year the payment was finally made.

I refer the hon. Member to the reply to him on 21 May at columns 326–27.

To ask the Secretary of State for Social Security (1) if he will publish a leaflet for the public setting out the rules governing the new compensation scheme for late payment of social security benefits announced on 4 May, to include the clearance targets relevant to each benefit;(2) if he will publish the full rules governing the award and calculation of compensation in the new compensation scheme for late payment of social security benefits announced on 4 May.

The special payment arrangements to compensate for late payment of benefit are not new but were introduced several years ago. We have, however, recently significantly improved the arrangements by reducing, in the majority of cases, the period before which payment of compensation is considered and linking it with the relevant clearance targets.The arrangements are ex-gratia and so it is not considered appropriate to publish the internal guidance. However, the criteria under which payment of compensa-tion is considered are:

The delay must be six months plus the relevant target clearance time set for the majority of claims (usually between 85 per cent. and 95 per cent.);
The delay must be caused by official error;
The arrears must be £50 or more.
There are no plans to publish a leaflet.

To ask the Secretary of State for Social Security what is the clearance target for each social security benefit which will be used in the calculation of the new compensation scheme announced on 4 May.

The targets will be used in the calculation of the revised compensation arrangements will be the Secretary of State secondary targets for the clearance of new claims to the relevant benefit as published in the Benefits Agency business plan. For those benefits which do not have a Secretary of State clearance target the target will be the operational or internal target set by the BA. In the case of those benefits which do not have a secondary clearance target, the primary target will be used.