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Allowance for Lowered Standard of Occupation
Mr. Donohoe: To ask the Secretary of State for Social Security (1) if he will make a statement relating to the case of a constituent of Cunninghame, South, national insurance number YM 61 93 54 D, indicating under what legislation he can appeal against the withdrawal of his award of allowance for lowered standard of occupation; which agency will reach a decision on this appeal; and for what reasons on 12 March a letter from the War Pensions Agency indicated to him that he could not be supplied with a copy of the legislation governing allowance for lowered standard of occupation in relation to his case due to copyright laws; [23992]
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- (2) what factors led the War Pensions Agency to change the reference system used on the payment books for the allowance for lowered standard of occupation; when people in receipt of ALSO were asked to return these payment books; and how many of these were subsequently advised whilst the War Pensions Agency was replacing the reference numbers on their payment books that the level of payments of ALSO to them were being reduced; [23773]
(3) how many applicants in receipt of allowance for lowered standard of occupation have had their awards (a) reduced and (b) withdrawn; how much in benefits these applicants have lost as a result of this change; what are the reasons for these changes; and how long his Department has been incorrectly administering legislation in relation to ALSO; [23774]
(4) if he will make a statement relating to the case of a constituent of Cunninghame, South, national insurance number YM 61 93 54 D, indicating under what legislation his award of allowance for lowered standard of occupation was cancelled with effect from 3 April; for what reasons his award was reduced; when the mistake by his Department in relation to his award came to light; and what factors underlay the time taken by his Department to notice this mistake; [23993]
(5) if he will make a statement relating to the case of a constituent of Cunninghame, South, national insurance number YM 61 93 54 D, indicating under what legislation he was awarded his allowance for lowered standard of occupation on 20 July 1988. [23991]
Mr. Heald: These are matters for Mr. Kevin Caldwell, chief executive of the War Pensions Agency. He will write to the hon. Member.
Letter from K. C. Caldwell to Mr. Brian Donohoe, dated 1 April 1996:
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The Secretary of State for Social Security has asked me to reply to your Parliamentary Questions about the Allowance for Lowered Standard of Occupation (ALSO).
Awards of ALSO are made under article 21 of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983 (SPO). This legislation provides that ALSO may be awarded where the war pensioned disablement is such as to render a pensioner incapable, and likely to remain permanently incapable, of following his regular occupation. He must also be incapable of following any other suitable occupation which is of an equivalent standard.
At the end of 1994, it came to light that some awards of ALSO were based on an incorrect interpretation of the law. The error was considering only whether a pensioner could get back into service and whether civilian earnings were less than service earnings. Payments had therefore been made where the war pensioned disablement had had no effect on ability to follow the service occupation. The Secretary of State decided, therefore, to review all awards of ALSO to ensure they were soundly based. Article 67 of the SPO provides the power for the Secretary of State to withdraw any award found to be incorrectly made. No awards of ALSO are to be reduced but a total of 1301 pensioners are to have their ALSO withdrawn. The Secretary of State decided to exercise his discretion to continue all awards found to be incorrectly made until he had examined all appropriate cases and that all incorrect awards should be withdrawn from the common date of 3 April 1996. No-one will be asked to repay any money for ALSO, either already paid, or to be paid up to 3 April.
Those pensioners who, once ALSO has been cancelled, will continue to receive payment by order book for other awards under the War Pension scheme were notified on 14 March 1996 that a replacement book would be issued within a few days. They were then notified on 21 March 1996 of the arrangements for returning the old book. The remainder, whose regular War Pension payment consisted solely of ALSO, were notified on 21 March 1996 of the arrangements for returning their books.
You asked what factors underlay the time taken by the Department to notice the mistake. The original legislation, which was introduced in 1946, was to compensate the war time conscript, who, because of his war pensioned disablement, could no longer do the civilian job he had done before call-up. The legislation became much less clear cut as a result of amendments introduced in the 1970's to bring career servicemen and women within the scope of the allowance. The incorrect interpretation of the legislation had its roots in those 1970s legislative changes The majority of awards to be withdrawn were made in the 1990s and are being paid at the current maximum rate of £38.12 a week.
You ask under what legislation an appeal my be made against the decision to withdraw ALSO. Under the Pensions Appeal Tribunals Act 1943 there is no right of appeal against a decision on a war pensions supplementary allowance. These decisions are administrative in character and are made by the Secretary of State in exercise of the power conferred on him by article 70, as the sole interpreter and administrator of the Order. As such, his decisions are susceptible to challenge only by judicial review.
You also ask about your constituent (NINO YM619354D). He received a Gratuity, under the War Pensions Scheme for disablement assessed at 6-14 per cent. and currently receives ALSO. In the Secretary of State's view, his disablement does not prevent him from following his regular service occupation of "Driver" and his award of ALSO is therefore to be withdrawn on 3 April 1996.
When your constituent telephoned the Agency and asked for a copy of the relevant legislation, this was taken as meaning he wanted a copy of the whole publication, ie the SPO. The War Pensions Agency is not able to supply copies of the SPO in its entirety as it is a priced item supplied by Her Majesty's Stationery Office. Our letter of 12 March 1996 told him that he could view a copy of the legislation at his local War Pensioners' Welfare Office. However, it is clear that a copy of the relevant two page extract from the legislation, ie Article 21, could have been copied and sent to him. I am sorry that this course of action was not immediately taken but I can confirm that these papers have now been sent to him.
Finally, you ask about the factors which led us to change the reference system used on payment books. The War Pensions Agency previously used two separate computer systems; one to support administration of a claim, the other to make payment. The two systems used different reference numbers. Since April 1995, the Agency has introduced a new computer system which supports the administration of claims through to payment. As part of that change the Agency, in accordance with the Department's long term strategy, introduced the use of the National Insurance number as the sole reference number. This change has affected all War Pensioners' records, on a rolling programme, not just of those in receipt of ALSO. The change to the use of national Insurance numbers does not affect War Pensions payments and is completely unconnected to the review of ALSO awards.
I hope you find this information useful.
Benefits Agency (Advice line)
Mr. Frank Field: To ask the Secretary of State for Social Security (1) what is the current budget for the Benefits Agency's freeline benefit advice line service; and what are the proposed budgets for the next two financial years; [23847]
- (2) if he will make a statement on the future of the Benefits Agency's freeline benefit advice line; and if he will make a statement; [23848]
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(3) how many Benefits Agency staff are employed to run the Benefits Agency's freeline benefit advice line. [23849]
Mr. Roger Evans: This is a matter for Peter Mathison, the chief executive of the Benefits Agency. He will write to the hon. Member.
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