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Mr. Scott : It is not possible to provide reliable estimates of the numbers whose main source of income is derived from income support or unemployment benefit,


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sickness benefit or invalidity benefit. Estimated average numbers of people receiving income support with and without other benefits can be found in table 7 of "Departmental Report, The Government's Expenditure Plans 1993-94 to 1995-96" (Cm 2213), a copy of which is in the Library.

Information on the number of recipients of unemployment benefit, sickness benefit and invalidity benefit is in the table.


Thousands                                                        

             |Unemployment|Sickness    |Invalidity               

             |Benefit     |Benefit     |Benefit                  

-----------------------------------------------------------------

1989         |378         |108         |952                      

1990         |299         |103         |1,003                    

1991         |555         |109         |1,068                    

1992         |669         |138         |1,175                    

1993         |659         |<1>-        |<1>-                     

<1>Figures not available.                                        

Notes:                                                           

1. Working adults defined as males aged 16 to 64, females 16 to  

59.                                                              

2. Recipients may be receiving more than one benefit.            

Disablement Benefits

Mr. Bradley : To ask the Secretary of State for Social Security how many people will lose the right to claim short-term incapacity benefit by virtue of the changes in contribution conditions ; and what estimate he has made of the annual savings resulting from each change.

Mr. Scott : The contribution conditions for short-term incapacity benefit will be the same as those which currently apply to sickness benefit, but the exemption from satisfying these conditions in industrial injury and disease cases will not be carried forward. This change will affect around 3,000 claims a year, producing net savings of under £5 million in 1995-96 ; and around £5 million in 1996-97. Note : Estimates expressed in constant 1993-94 prices, rounded to the nearest £5 million, and net of offsetting changes in income related benefit expenditure.

Mr. Bradley : To ask the Secretary of State for Social Security what are the estimated savings to his Department arising from each clause of the Social Security (Incapacity For Work) Bill.

Mr. Scott : The estimated savings are in the table. Clauses 1 and 2 have been grouped because it is not feasible to apportion the savings further. The total savings shown differ from those specified in the explanatory and financial memorandum in two ways :

savings that arise from extending the qualifying period for the disability premium paid with income-related benefits to 52 weeks are excluded. This will be given effect in regulations and not the Bill ;

the savings in the Explanatory and Financial Memorandum were given in cash terms.


Clause     |1995-96   |1996-97              

           |£ million |£ million            

--------------------------------------------

1 and 2    |-145      |-325                 

3          |n.a.      |n.a.                 

4          |-160      |-475                 

5          |-50       |-180                 

6          |n.a.      |n.a.                 

7          |Negligible|Negligible           

8          |n.a.      |n.a.                 

9          |+5        |+5                   

10         |n.a.      |n.a.                 

11         |-25       |-90                  

Note:                                       

Estimates are expressed in constant 1993-94 

prices and are rounded to the nearest £5    

million. Totals may not add up due to       

rounding.                                   

Mr. Bradley : To ask the Secretary of State for Social Security how many people found incapable of work under the new incapacity test would be excluded from receiving incapacity benefit by other changes included in the Social Security (Incapacity For Work) Bill ; and how much each category of change is expected to save.

Mr. Scott : We estimate that as a result of the proposed upper age limits for incapacity benefit some 50,000 people in 1995-96, and 150, 000 in 1996-97, will receive retirement pension instead of incapacity benefit. The estimated effect on benefit expenditure is negligible, as sickness benefit and invalidity benefit currently paid to people over pension age is based on their retirement pension entitlement. The exemption from the sickness benefit contribution conditions for people suffering from industrial injury or disease will not apply to incapacity benefit. This change will affect around 3,000 claims a year, producing net savings of under £5 million in 1995-96 ; and around £5 million in 1996-97.

Notes : Estimates expressed in constant 1993-94 prices, rounded to the nearest £5 million, and net of offsetting changes in income related benefit expenditure.

Take-up Rates

Sir Thomas Arnold : To ask the Secretary of State for Social Security what has been the percentage take-up rate of social security benefits in each year since 1987.

Mr. Burt : For most of the main contributory benefits--for example, retirement pension, widows' benefits and unemployment benefit--and child benefit, take-up is thought to be close to 100 per cent. Information on the take-up of income-related benefits can be found in "Income Related Benefits --Estimates of Take-up in 1987" published July 1991 and "Income Related Benefits--Estimates of Take-up in 1989" published January 1993, copies of which are in the Library.

Child Support Agency

Mr. Kirkwood : To ask the Secretary of State for Social Security for what reasons the specific information requested about the Child Support Agency on 5 November, Official Report, column 580, is largely unavailable, with particular reference to a breakdown of applications by region and of assessments by applicant type.

Mr. Burt : I understand that the information requested could be obtained only at disproportionate cost because information on the performance of the Child Support Agency comes from computer-generated figures summarising work at the agency's six computer centres on a monthly basis, supported by clerical counts.

Where requests are made for data not produced either by the computer, or by existing clerical counts, the cost of arranging for collection of the information must be considered. In the case of the chief executive's reply of 5 November 1993, which was subsequently amended in her reply dated 23 November, figures were not available on the number of child applicants in Scotland, nor in the breakdown of assessments by applicant type. To provide these figures would, in both cases, have necessitated the


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individual investigation of a large number of cases, either in an individual centre in the case of the numbers of child applicants in Scotland or in all six centres in the case of the breakdown of assessments by type.

Miss Lestor : To ask the Secretary of State for Social Security what arrangements have been made by the Child Support Agency to assess and collect maintenance on behalf of a parent who is resident in, and whose child or children is or are resident in, the United Kingdom from an absent parent who is resident abroad.

Mr. Burt : The jurisdiction of the Child Support Agency does not extend beyond the United Kingdom. The Lord Chancellor's Department administers reciprocal enforcement agreements with many foreign countries. These provisions allow for the enforcement of British court orders abroad and for the enforcement of foreign orders in Britain. We have no plans to change these arrangements.

Mr. Channon : To ask the Secretary of State for Social Security what is the annual cost to public funds of the Child Support Agency.

Mr. Burt : The latest estimate of the cost of the Child Support Agency for 1993-94 is £117 million.

Mrs. Anne Campbell : To ask the Secretary of State for Social Security what plans he has to extend the power of the Child Support Agency with regard to the division of any assets of divorcing partners after 1996.

Mr. Burt : We have no such plans. Division of assets will remain a matter for the courts.

Mr. Channon : To ask the Secretary of State for Social Security what saving of public money is expected to be achieved by the Child Support Agency in the first 12 months of its operation.

Mr. Burt : Benefit savings were originally estimated at £530 million. The actual amount will be lower, but it is not possible to provide an accurate revised figure, since the full impact of the recent policy changes is not yet known.

Residential Care

Mr. Hinchliffe : To ask the Secretary of State for Social Security what is his estimate of the total projected expenditure on income support claims towards the cost of residential or nursing home care inclusive of cases that have been and will be handled by local authorities under the provisions of the National Health Service and Community Care Act 1990 for (a) the current financial year, (b) 1994-95 and (c) 1995-96 ; and if he will make a statement.

Mr. Burt : The latest estimates are :

(a) £2,500 million

(b) £2,280 million, and

(c) £2,180 million.

Advertising

Mr. Matthew Taylor : To ask the Secretary of State for Social Security if he will list all television advertising, newspaper advertising, radio advertising and other promotional campaigns with a budgeted cost in excess of £10,000 conducted by (a) his Department and (b) his agencies (i) in the current financial year and (ii) planned for 1994-95, showing for each the objectives and mechanisms for assessing the effectiveness of the advertising.


Column 693

Mr. Scott : The information is in the table.


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DSS Headquarters                                                                                                                                                                                                    

1993-94 campaigns and promotions                                                                                                                                                                                    

                                                     |Objective                                           |Mechanisms for                                                                                           

                                                                                                          |measuring the                                                                                            

                                                                                                          |effectiveness                                                                                            

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

1. Council Tax Benefit                               |Continuation of campaign which began in 1992-93,    |Telephone and coupon response for leaflets                                                               

                                                     |to maximise awareness of Council Tax Benefit                                                                                                                  

                                                                                                                                                                                                                    

2. Child Support                                     |To inform public of planned changes in child support|Telephone and written response                                                                           

   -Changes in Regulations                           |maintenance regulations                                                                                                                                       

                                                                                                                                                                                                                    

3. Pension Law Review Committee                      |Publicise the report of the Pension Law Review      |Telephone response                                                                                       

                                                     |Committee (Goode Report)                                                                                                                                      

                                                                                                                                                                                                                    

4. Personal Pension                                  |Potential personal pension holders exercising       |Telephone and coupon response                                                                            

                                                     |informed choice                                                                                                                                               

5. Disability awareness                              |Make information available to general public and to |Telephone and coupon response                                                                            

                                                     |disabled people about antidiscriminatory prac-                                                                                                                

                                                     |tices, obstacles and opportunities                                                                                                                            

                                                                                                                                                                                                                    

6. State Pension Age                                 |Make information available on proposed legislative  |Take up response of leaflets                                                                             

                                                     |changes concerning State Retirement Pension                                                                                                                   

                                                     |age                                                                                                                                                           

                                                                                                                                                                                                                    

7. Working with benefits                             |Make information available to unemployed people     |Awareness of TV advertising. Telephone response                                                          

                                                     |with families about Family Credit and other         |for Benefit News on a daily and weekly basis.                                                            

                                                     |in-work benefits                                    |Interview respondents to see if they conform to                                                          

                                                                                                          |desired profile                                                                                          

                                                                                                                                                                                                                    

8. Family Credit                                     |Provide information to Child Benefit recipients on  |Telephone and written response                                                                           

                                                     |their eligibility for Family Credit                                                                                                                           

                                                                                                                                                                                                                    

                                                     |To provide advisers and intermediaries with         |Medium to long-term take-up of benefit, mainte-                                                          

                                                     |up-to-date information on Family Credit             |nance of high awareness levels                                                                           

                                                                                                                                                                                                                    

9. Disability Working Allowance                      |To make disabled jobseekers aware of the help       |Telephone response. Interview respondents to see if                                                      

                                                     |Disability Working Allowance could provide in       |they conform to desired profile                                                                          

                                                     |facilitating their transition into work                                                                                                                       


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Benefits Agency                                                                                                                                                                                                                       

1993-94 campaigns and promotions                                                                                                                                                                                                      

                                                                             |Objective                                         |Evaluation                                                                                           

                                                                                                                                |mechanisms                                                                                           

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

1. Prescribed Industrial Injuries Disease 12                                 |To inform all coal workers who have worked        |Coupon response on adverts, coupon coding to                                                         

-Bronchitis and/or Emphysema in Coal                                         |underground for 20 years or more,and who          |assess cost effectiveness of individual titles and                                                   

Workers                                                                      |suffer from bronchitis and/or emphysema, that     |qualitative research of the advert with the target                                                   

                                                                             |they may now be able to claim Industrial          |group                                                                                                

                                                                             |Injuries Disablement Benefit and to give them                                                                                                           

                                                                             |information and access to the claiming procedure                                                                                                        

                                                                                                                                                                                                                                      

2. Severe Cold Weather Payments                                              |To inform people on Income Support who are        |Monitored calls on the Winter Warmth Line which                                                      

                                                                             |disabled, retired or who have children that a     |is referred to on the advert                                                                         

                                                                             |period of cold weather has been forecast and                                                                                                            

                                                                             |that they will receive extra benefit for heating                                                                                                        

                                                                                                                                                                                                                                      

3. Year of the Elderly                                                       |To raise awareness of the benefits available to   |Monitored request for the leaflet and the campaign                                                   

                                                                             |elderly people through the promotion of our       |pack                                                                                                 

                                                                             |new leaflet Help after Retirement                                                                                                                       


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Contributions Agency                                                                                                                                                                                        

1993-94 campaigns and promotions                                                                                                                                                                            

                                                   |Objectives                                        |Mechanisms for                                                                                       

                                                                                                      |measuring the                                                                                        

                                                                                                      |effectiveness                                                                                        

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

1. Phone Book Advertising                          |To publicise local Contributions Agency offices to|Customer satisfaction survey                                                                         

                                                   |general public                                                                                                                                          

                                                                                                                                                                                                            

2. Mailing to employers                            |To inform employers of changes in legislation     |Customer satisfaction survey                                                                         

                                                                                                                                                                                                            

3. Mailing to Class 2 and Class 3                  |Inform people paying by stamp card of new system  |Return of stamp cards, and increase in payments by                                                   

contributors                                       |of paying by quarterly billing and of direct debit|direct debit                                                                                         

                                                                                                                                                                                                            

4. Exhibitions                                     |To promote the work of Contributions Agency to    |Customer satisfaction survey                                                                         

                                                   |employers and key advisers                                                                                                                              


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1/4

Child Support Agency                                                                                                                                                                        

1993-94 campaigns and promotions                                                                                                                                                            

                                               |Objective                                     |Mechanisms for                                                                               

                                                                                              |measuring the                                                                                

                                                                                              |effectiveness                                                                                

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Introduction of Child Support Agency           |Continuation of the campaign which began in   |Telephone and coupon response plus attitudinal                                               

                                               |1992-93 to introduce the Child Support Agency |research                                                                                     

1994-95 campaigns and promotions                                                                                                                                                            

Plans for promotion work in 1994-95 for DSS headquarters and the agencies have not yet been confirmed.                                                                                      

Incapacity for Work

Dr. Bray : To ask the Secretary of State for Social Security (1) what consultations are taking place with the British Medical Association on the development, field testing and evaluation of the objective medical tests for each category of functional limitation as proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1-- for use in the assessment of capacity for work ;

(2) what consultations are taking place with the Manic Depression Fellowship on the development, field testing and evaluation of the objective medical tests in relation to the mental health impairment score proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1--for use in the assessment of capacity for work ;

(3) what consultations are taking place with the Royal College of Nursing on the development, field testing and evaluation of the objective medical tests in relation to the mental health impairment score proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1-- for use in the assessment of capacity for work ;

(4) what consultations are taking place with the Royal College of General Practitioners on the development, field testing and evaluation of the objective medical tests for each category of functional limitation as proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1--for use in the assessment of capacity for work ;

(5) what consultations are taking place with the British Medical Association on the development, field testing and evaluation of the objective medical tests in relation to the mental health impairment score proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1--for use in the assessment of capacity for work ;

(6) what consultations are taking place with the Royal College of Physicians on the development, field testing and evaluation of the objective medical tests for each category of functional limitation as proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1--for use in the assessment of capacity for work ;

(7) what consultations are taking place with the Scottish Schizophrenic Fellowship on the development, field testing and evaluation of the objective medical tests in relation to the mental health impairment score proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1--for use in the assessment of capacity for work ;

(8) what consultations are taking place with the Royal College of Psychiatrists on the development, field testing and evaluation of the objective medical tests in relation to the mental health impairment score proposed in the


Column 696

"Consultation on the Medical Assessment for Incapacity Benefit"--annex 1--for use in the assessment of capacity for work ; (9) what consultations are taking place with the Department of Health on the development, field testing and evaluation of the objective medical tests for each category of functional limitation as proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1-- for use in the assessment of capacity for work ;

(10) what consultations are taking place with the Royal College of Surgeons on the development, field testing and evaluation of the objective medical tests for each category of functional limitation as proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1-- for use in the assessment of capacity for work ;

(11) what consultations are taking place with the Institute of Psychiatry on the development, field testing and evaluation of the objective medical tests in relation to the mental health impairment score proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1-- for use in the assessment of capacity for work ;

(12) what consultations are taking place with the Royal College of General Practitioners on the development, field testing and evaluation of the objective medical tests in relation to the mental health impairment score proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1--for use in the assessment of capacity for work ;

(13) what consultations are taking place with the Department of Health on the development, field testing and evaluation of the objective medical tests in relation to the mental health impairment score proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1-- for use in the assessment of capacity for work ;

(14) what consultations are taking place with the Royal College of Physicians on the development, field testing and evaluation of the objective medical tests in relation to the mental health impairment score proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1--for use in the assessment of capacity for work ;

(15) what consultations are taking place with the Institute of Phychiatry on the development, field testing and evaluation of the objective medical tests for each category of functional limitation as proposed in the "Consultation of the Medical Assessment for Incapacity Benefit"--annex 1-- for use in the assessment of capacity for work ;

(16) what consultations are taking place with the Royal College of Nursing on the development, field testing and evaluation of the objective medical tests for each category of functional limitation as proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1-- for use in the assessment of capacity for work ;


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(17) what consultations are taking place with the Manic Depression Fellowship (Scotland) on the development, field testing and evaluation of the objective medical tests in relation to the mental health impairment score proposed in the "Consultation on the Medical Assessment for Incapacity Benefit"--annex 1--for use in the assessment of capacity for work.

Mr. Scott : Discussions about the proposed new medical incapacity test have been held with the joint consultants committee and with representatives of the Royal College of General Practitioners, the Royal College of Physicians, the Royal College of Psychiatrists, the Royal College of Surgeons and the British Medical Association. Officials have also discussed the test with officials in the Department of Health. The consultation document on the proposed test is freely available and over 4,700 copies have been distributed. A panel of 80 experts has been formed to help us construct the incapacity scales to be used in the test. The members of the panel have been asked to give their individual expert opinions, not to act as representatives of any particular organisation. Separate and additional discussions are being held about the mental health impairment score with experts in psychiatry, psychology and occupational medicine who are members of the panel.

National Insurance

Sir David Steel : To ask the Secretary of State for Social Security if he will seek to bring the present eight-hour part-time employment penalty rule for national insurance


Column 698

contributions into line with the present 16- hour penalty rule applying to benefits and with the future limits he is proposing.

Mr. Hague : National insurance contributions are normally credited to individuals in respect of complete weeks of qualifying unemployment. As a concession, employment of up to eight hours a week may be disregarded for this purpose. The extent of the concession is currently under review.

Family Credit

Mr. Frank Field : To ask the Secretary of State for Social Security how many people claiming family credit do not pay tax.

Mr. Burt : Two hundred and four thousand people who receive family credit do not pay tax.

Source : Five per cent. sample of Family Credit recipients as at 31 July 1993.

Benefits (Administration Costs)

Mr. Milburn : To ask the Secretary of State for Social Security, pursuant to his answer to the hon. Member for Islington, North (Mr. Corbyn) of 26 January, Official Report, columns 266-67, what have been the administrative costs of each of the benefits for each of the last four years for which figures are available.

Mr. Burt : The information is in the table :


Column 697


d

Estimated administration costs of benefits:                                                         

                                        |1988-89    |1989-90    |1990-91    |1991-92                

----------------------------------------------------------------------------------------------------

Child Benefit and One Parent Benefit<1> |105        |111        |107        |118                    

Income Support                          |1,114      |1,180      |1,348      |1,373                  

Sickness and Invalidity Benefit<1>      |154        |182        |208        |275                    

Family Credit                           |24         |30         |<1>46      |<1>33                  

Social Fund                             |n/a        |n/a        |132        |163                    

Note:                                                                                               

<1> Includes increased capital investment for information technology and publicity costs.           

Sickness Benefit

Mr. Redmond : To ask the Secretary of State for Social Security what plans he has to undertake research into any correlation between the levels of sickness claims and the proportion of full-time employees working over 46 hours per week in England.

Mr. Scott : None.

Consultancies

Mr. Meacher : To ask the Secretary of State for Social Security what was the value of consultancy contracts awarded by his Department each year since 1988, both in current prices and at constant 1994 prices.

Mr. Hague : The information is in the table.


Year           |Current prices|1993-94                      

                              |prices                       

               |£ million     |£ million                    

------------------------------------------------------------

1988-89        |49.5          |65.2                         

1989-90        |43.3          |53.4                         

1990-91        |83.2          |94.9                         

1991-92        |69.7          |74.7                         

1992-93        |100.9         |104.2                        

Independent Living Fund

Mr. Hinchliffe : To ask the Secretary of State for Social Security, pursuant to his answer of 8 February, Official Report, c. 215, how many applicants for assistance from the independent living fund were turned down on the grounds that the value of the applicant's existing package totalled £500 or more ; and how many of such applicants subsequently went into residential care.

Mr. Scott : I am informed by the director of the independent living (1993) fund that the information requested is not available.


Column 699

Public Bodies

Dr. Wright : To ask the Secretary of State for Social Security for each of the non-departmental bodies sponsored by his Department, whether the public has a statutory right to attend all board or committee meetings and to inspect (a) the minutes of meetings, (b) the annual reports and (c) the annual accounts.

Mr. Hague : There is no statutory right for members of the public to attend meetings or inspect the minutes of any of those bodies listed in "Public Bodies 1993", a copy of which is in the Library. An annual report is published by the chief adjudication officer and by the disability living allowance advisory board. Reports are also published periodically by the Social Security Advisory Committee and the Industrial Injuries Advisory Council. Otherwise none of the bodies listed is required to produce annual reports or accounts.

Students

Mr. Pope : To ask the Secretary of State for Social Security what are the aims, scope and nature of the consultations taking place between his Department and the Department for Education regarding full-time students who temporarily suspend their studies yet under the Income Support (General) Regulations 1987 are precluded from claiming income support or housing benefit even though they are not attending an institution ; and if he will make a statement.

Mr. Burt : Most full-time students are not eligible for income support or housing benefit because support is provided through the student support system. Those with mandatory awards who temporarily suspend their studies because of illness will not have their awards reduced for the first 28 days' absence, but beyond that the amount and duration of payments is at the discretion of the local education authority. When students are absent with the leave of their college for some other reasons, the amount and duration of payments is at the authorities' discretion from the start of their absence. Full-time students who suspend their studies because of ill- health for more than 28 weeks, and supply supporting medical evidence, are eligible to claim income support and housing benefit by virtue of having become one of the prescribed vulnerable groups. Our discussions with the Department for Education are about the extent and circumstances in which temporary suspension of studies occurs.

Invalidity Benefit

Mr. Gordon Brown : To ask the Secretary of State for Social Security how many appeals there were against invalidity benefit being removed in Fife in 1993.

Mr. Scott : This is a matter for Mr. Michael Bichard, the chief executive of the Benefits Agency. He will write to the hon. Member with such information as is available.

Letter from Michael Bichard to Mr. Gordon Brown, dated 14 February 1994 :

The Secretary of State has asked me to reply to your recent Parliamentary Question asking about appeals against the removal of Invalidity Benefit (IVB) in Fife in 1993.

The information is not available in the exact format requested. This is because Benefit Agency District boundaries do not


Column 700

correspond exactly with county or borough boundaries. Whilst the majority of Fife is dealt with by the Agency's Fife District, a small area of North Fife is dealt with by Dundee District Office (DO). However, because Dundee DO deals with a large area other than Fife, statistics for Dundee DO would include many people not living within Fife. I have therefore provided statistics for Fife District only. The statistics have been obtained from the District's own record of appeals.


Fife District                             

                            |Number       

------------------------------------------

Kirkaldy District Office    |27           

Cowdenbeath Benefits Office |75           

Dunfermline Benefits Office |45           

Leven Benefits Office       |58           

                            |---          

Total                       |205          

I hope you find this reply helpful.

NATIONAL FINANCE

Indonesia (Visit)

Mrs. Anne Campbell : To ask the Chancellor of the Exchequer, pursuant to his answer of 7 February, Official Report, columns 6-7, regarding his visit to Indonesia, if he will name the Indonesian and expatriate business people whom he met ; indicating what advantages to Britain will ensue ; and whether the British-funded railway project which he visited was funded from the Overseas Development Administration funds.

Mr. Nelson : In addition to meetings with the President of Indonesia, senior Ministers and the Governor of the Bank of Indonesia, the Chancellor of the Exchequer met :

Cigading railway project --Ministry of Communication and PERUMKA representatives ; BRI and Davy hosts.

PT Peni --Dr. J. M. Hay, President Director ; Mr. Gregory Kosasie, Vice- President Director ; Mr. Kevin Dunne, Associate President, British Petroleum companies in Indonesia.

Indonesia British Association --Lunch given for 55 guests from the banking, business and financial sectors hosted by Mr. R. M. Hajiwibowo, Chairman, Indonesia British Association.

World Bank --Mr. Nicholas Hope (Director) Indonesia and his staff. Lippo Bank --Mr. Markus Parmadi, President, Director and senior colleagues.

The Chancellor also gave a reception for 150 senior Indonesian and British business people, and there were 95 guests at a dinner given by the ambassador.

The visit enabled my right hon. and learned Friend to raise the profile of the United Kingdom in Indonesian Government and business circles. This will help to improve investment and trade relations, and has provided valuable support for the efforts of the embassy to promote British business. It also provided the British business men who accompanied the Chancellor with access to key Indonesian decision makers which they might otherwise have found difficult to achieve. The Cigading to Serpong railway project is being supported from an aid and trade provision.


Column 701

VAT on Fuel

Mrs. Bridget Prentice : To ask the Chancellor of the Exchequer what estimate he has made as to the effect of the imposition of value added tax on domestic fuel on residents of sheltered housing units with communal facilities.

Sir John Cope : No such estimate has been made. In cases where supplies of electricity or gas or unmetered by the landlord to individual tenants there will normally be no separate VAT charge since the VAT liability of the fuel will follow that of the accommodation. However, since in many cases the landlord will be unable to recover the VAT charged by the gas/electricity companies there is likely to be a commensurate increase in sheltered housing fees. Most tenants in such units will be eligible for the extra financial assistance being made available by the Government to help meet increased costs resulting from this VAT charge.


Column 702

Draft Budget

Mr. Allen : To ask the Chancellor of the Exchequer if he will make it his policy to publish a draft Budget.

Mr. Dorrell : No.

Health and Education Spending

Mr. Simon Hughes : To ask the Chancellor of the Exchequer what proportion of public expenditure during (1) 1993-94 and (2) 1994-95 will be spent on (a) health and (b) education.

Mr. Portillo : The available information is in the table. Local authorities have not yet announced their detailed spending plans for 1994- 95.


Column 701


Spending on health and education                                     

(Per cent. of general government expenditure, excluding              

privatisation proceeds)                                              

                    <1>1993-94          <2>1994-95                   

                   |Health   |Education|Health   |Education          

---------------------------------------------------------------------

Central Government |12.7     |3.2      |12.8     |3.5                

Local Authorities  |2.5      |8.6      |N/a      |N/a                

General Government |15.2     |11.8     |N/a      |N/a                

<1>Latest estimates.                                                 

<2>Plans.                                                            


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