Employment and Support Allowance Debate
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Lord Grayling
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Employment and Support Allowance
Lord Grayling Excerpts(13 years, 6 months ago)
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Stephen Timms
To ask the Secretary of State for Work and Pensions if he will estimate the number of recipients of employment and support allowance there would be in the (a) work related activity group and (b) assessment phase (i) with and (ii) without time-limiting in place for each financial year from 2011-12 to 2015-16.
[Official Report, 16 May 2011, Vol. 528, c. 94-5W.]
Letter of correction from Mr Chris Grayling:
An error has been identified in the written answer given to the right hon. Member for East Ham (Stephen Timms) on 16 May 2011.
The full answer given was as follows:
Chris Grayling
The first table shows the estimated future recipients of contributory employment and support allowance (ESA) in the work related activity group (WRAG) with and without time-limiting in force.
With time-limiting in force | Without time-limiting in force | |
|---|---|---|
2011-12 | 200,000 | 200,000 |
2012-13 | 260,000 | 400,000 |
2013-14 | 200,000 | 590,000 |
2014-15 | 160,000 | 730,000 |
2015-16 | 40,000 | 720,000 |
The second table shows the estimated future recipients of contributory ESA in the assessment phase with and without time-limiting in force.
With time-limiting in force | Without time-limiting in force | |
|---|---|---|
2011-12 | 180,000 | 180,000 |
2012-13 | 110,000 | 190,000 |
2013-14 | 180,000 | 190,000 |
2014-15 | 170,000 | 180,000 |
2015-16 | 160,000 | 170,000 |
Figures have been rounded to the nearest 10,000 claimants and are based on Budget 2011 forecasts for the ESA time-limiting proposal. Caseloads for contributory ESA have been given as people on income-related ESA or credits only ESA will be unaffected by the time limiting proposal.
For those who leave the contributory ESA as a result of the time limit, it is estimated that around 60%, or approximately 400,000 people by 2015-16, are expected to be fully or partially compensated by income-related ESA, so will retain entitlement to ESA. And those who do not qualify for income-related ESA may remain on ESA on a credits-only basis.
The correct answer should have been as follows. The changes are identified in bold font.
Chris Grayling
The first table shows the estimated future recipients of contributory employment and support allowance (ESA) in the work related activity group (WRAG) with and without time-limiting in force.
With time-limiting in force | Without time-limiting in force | |
|---|---|---|
2011-12 | 200,000 | 200,000 |
2012-13 | 190,000 | 400,000 |
2013-14 | 200,000 | 590,000 |
2014-15 | 160,000 | 730,000 |
2015-16 | 40,000 | 720,000 |
The second table shows the estimated future recipients of contributory ESA in the assessment phase with and without time-limiting in force.
With time-limiting in force | Without time-limiting in force | |
|---|---|---|
2011-12 | 180,000 | 180,000 |
2012-13 | 180,000 | 190,000 |
2013-14 | 180,000 | 190,000 |
2014-15 | 170,000 | 180,000 |
2015-16 | 160,000 | 170,000 |
Figures have been rounded to the nearest 10,000 claimants and are based on Budget 2011 forecasts for the ESA time-limiting proposal. Caseloads for contributory ESA have been given as people on income-related ESA or credits only ESA will be unaffected by the time limiting proposal.
For those who leave the contributory ESA as a result of the time limit, it is estimated that around 60%, or approximately 400,000 people by 2015-16, are expected to be fully or partially compensated by income-related ESA, so will retain entitlement to ESA. And those who do not qualify for income-related ESA may remain on ESA on a credits-only basis.
Stephen Timms
To ask the Secretary of State for Work and Pensions if he will estimate the cost to the Exchequer of excluding from the 365 day period of eligibility for contributory employment and support allowance any days that the claimant spends in the assessment phase in each of the next five financial years.
[Official Report, 7 June 2011, Vol. 529, c. 266-67W.]
Letter of correction from Mr Chris Grayling:
An error has been identified in the written answer given to the right hon. Member for East Ham (Stephen Timms) on 7 June 2011.
The full answer given was as follows:
Chris Grayling
As part of the Welfare Reform Bill we have set out our intention to introduce a time limit of one year for those claiming contributory employment and support allowance (ESA) and who are placed in the Work Related Activity Group (WRAG). The intention is that time spent in the assessment phase will count towards the 365 day period of the time limit. In total the policy is expected to generate annual benefit savings of £400 million in 2012-13 rising to £1.1 billion by 2014-15.
If the proposal were to change so that the time limit period is extended by the length of time it takes for each person to undergo a work capability assessment to determine entitlement to ESA, this would reduce the expected benefit savings.
The following table shows the expected change in the annual savings if the time spent in the assessment phase were excluded from the period of the time limit. It shows estimated overall costs to the Exchequer of around £200 million by 2014-15.
2012-13 | 2013-14 | 2014-15 | 2015-16 | 2016-17 | |
|---|---|---|---|---|---|
Estimated savings from current policy (£ million) | 420 | 780 | 1,090 | 1,330 | 1,380 |
Change to estimated savings (£ million) | -150 | -20 | -20 | -20 | -10 |
% change from current policy | -36 | -2 | -1 | -1 | -1 |
Change in the total numbers affected by time limiting | -80,000 | -10,000 | -10,000 | -10,000 | -10,000 |
Note: Figures are in cash terms, and are for Great Britain. They are rounded to the nearest £10 million or 10,000 claimants. |
The correct answer should have been as follows. Changes are identified in bold font.
Chris Grayling
As part of the Welfare Reform Bill we have set out our intention to introduce a time limit of one year for those claiming contributory employment and support allowance (ESA) and who are placed in the Work Related Activity Group (WRAG). The intention is that time spent in the assessment phase will count towards the 365 day period of the time limit. In total the policy is expected to generate annual benefit savings of £400 million in 2012-13 rising to £1.1 billion by 2014-15.
If the proposal were to change so that the time limit period is extended by the length of time it takes for each person to undergo a work capability assessment to determine entitlement to ESA, this would reduce the expected benefit savings.
The following table shows the expected change in the annual savings if the time spent in the assessment phase were excluded from the period of the time limit. It shows estimated overall costs to the Exchequer of around £60 million by 2014-15.
2012-13 | 2013-14 | 2014-15 | 2015-16 | 2016-17 | |
|---|---|---|---|---|---|
Estimated savings from current policy (£ million) | 420 | 780 | 1,090 | 1,330 | 1,380 |
Change to estimated savings (£ million) | -20 | -20 | -20 | -20 | -20 |
% change from current policy | -4 | -3 | -2 | -1 | -1 |
Change in the total numbers affected by time limiting | -10,000 | -10,000 | -10,000 | -10,000 | -10,000 |
Note: Figures are in cash terms, and are for Great Britain. They are rounded to the nearest £10 million or 10,000 claimants. |