Supplementary Memoranda submitted by Department of
Social Security (DLA 11A and DLA 11B)
EXPLANATION OF THE SAVINGS ESTIMATES ASSOCIATED WITH THE
BENEFIT INTEGRITY PROJECT
The original savings estimates show that for an investment
of £11.5 million in each of the three years covered by the
1996 Public Expenditure Survey, savings were assumed as £27
million in 1997-98, £40 million in 1998-99 and £35 million
in 1999-2000.
These estimates comprise £20 million/£30 million/28
million for the targeted review and renewal activity and £7
million/£10 million/£7 million from strengthening fraud
detection activity in DLA generally.
The savings estimates for the review and renewal activity
have been revised in the light of live running up to the end of
1997 and are now estimated as £5 million/£40 million/£40
million over the period. These are the figures shown in the Department's
Memorandum at Table H5.
We do not yet have up-to-date estimates of the savings likely
to arise from the fraud activity.
HOUSEHOLD DISTRIBUTION
OF DLA
Proportion of households where at least one member
of the household is in receipt of the DLA
within the household income distribution, both with benefits and
when benefits are removed
|
| Quintile | With DLA(per cent)
| Without DLA(per cent) |
|
| 1 | 11 | 30
|
| 2 | 29 | 31
|
| 3 | 31 | 21
|
| 4 | 20 | 13
|
| 5 | 10 | 6 |
|
|
| All | 100 | 100
|
Note:
Figures may not sum exactly due to rounding.
8. The table shows that when benefits are removed the position
of recipients in the income distribution deteriorates significantly,
if we consider DLA some 40 per cent of recipients are in the lowest
two quintiles when in receipt of the benefit but if the benefit
is removed some 61 per cent of recipients are now found in the
lowest two quintiles.
The median weekly household net equivalent income for
households where at least
one person within the household is in receipt of DLA and how this
changes when
benefits are removed. Rounded to nearest £ Janaury 1996 prices
|
| Quintile | With DLA | Without DLA
|
|
| 1 | £136 | £103
|
| 2 | £179 | £146
|
| 3 | £236 | £192
|
| 4 | £316 | £272
|
| 5 | £454 | £408
|
|
9. Note these are equivalised amounts a couple with no children
on the median net income in the bottom quintile would receive
£136 per week a single person £83, i.e., 0.61 x £136
etc.
| 
