Long Term Incapacity Allowance

1240/5(2911)

WRITTEN QUESTION TO THE MINISTER FOR

SOCIAL SECURITY BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 6th JUNE 2006

Question

Will the Minister inform members –

( a ) of the total number of LTIA claimants in receipt of benefit along with percentages of incapacity awarded

and the total sum paid out for the year 2005?

b )  of the number of claimants, and the total paid for Disablement and Invalidity Benefits separately for the

year 2003, the last full year of operation under the old system;?

( c ) how many LTIA claimants have been successful in finding work, and the reasons for any who have been

unsuccessful?

( d ) how much additional cost, if any, has been transferred from the Social Security system to Parish Welfare

departments and to general tax revenues for native and non-native welfare payments as a result of the change to a system of percentage awards of LTIA, and if none the reasons why?

Answer

As the Deputy is aware, having contributed to it, a review of the Incapacity Benefit system is underway with a report due later this year which will cover the wider issues within these questions and therefore I have not attempted to anticipate the outcome of that review.

1. The total expenditure onLong-Term Incapacity Allowance(LTIA)in 2005 was: £1,421,000.  In addition expenditure on legacy claims for Disablement Benefit (DB) and Invalidity Benefit (INV) were £3,703,000 and £18,131,000 respectively;

the total number of people in receipt of LTIA as at 31st December 2005, was 516. In addition, there were 854 people still receiving DB and 1,962 receiving INV. The initial percentage awards for the LTIA recipients are illustrated below –

%

Incapacity 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

No. of

recipients 14 14 29 47 24 35 17 23 9 63 14 47 10 41 27 36 5 12 1 48

The percentages illustrate the long-term award; however, additional payments may be made over the short-term where, for example, someone is having an operation. The total expenditure of £23,255,000 for all three benefits was in 2005 and there were 3,332 long term benefit recipients at the 31st December 2005;

2. as at31stDecember 2003, thenumberofpeople in receipt ofDisablement Benefit was828 and total expenditure for the year was £3,432,000. Thenumber of people in receipt of Invalidity Benefit was 1,954 and the total expenditure for the year was £16,260,000, giving a total expenditure of £19,692,000 in2003 and 2,782 long term benefit recipients at the end of the year;
   3. 157 people(30%)of the 516LTIA recipients asatDecember2005 are showingashaving paid Class I Social Security contributionswhile receiving LTIA.Some recipients of Invalidity Benefit have moved

voluntarily to LTIA and into open employment after a period of Therapeutic Work. However, it is not

possible to list the many reasons why an LTIA recipient is not working: some may be undertaking training to find new roles while others may decide not to work. This aspect will be covered by the review;

4. it is impossible to estimate whether therehas been a transferof cost as a direct result ofan LTIA award. As has been explained in answers to previous questions, the eligibility criteria for the present benefits differs from the previous benefits such that somepeople now receive benefit who would nothaveunder the old system. Furthermore, the new system allows recipients to work where possible and thereby achieve a degree of financial independence.Therefore,in some cases, the financial cost to the Welfare system maybereduced.To give any estimate would require an individual reviewofeachcaseand the Departmentisnotprivy to that information.