Work and Pensions written question – answered at on 15 September 2008.
To ask the Secretary of State for Work and Pensions how much was spent by his Department on backdated payments of pension credit in each of the last five years; and if he will make a statement.
Precise information on the time customers take to claim pension credit (known as backdating) is not routinely collected, nor therefore is expenditure on backdating. Expenditure on backdating has been estimated using information on average awards and backdating periods. Backdating periods have been estimated by comparing information on the date entitlement starts and (the date pension credit is put into payment. In some cases where payment starts after entitlement the delay will be due to processing times, evidence gathering and verification work which routinely accompanies claims for pension credit. In 2006-07 around 60 per cent. of all successful new claims were backdated for three months or less (this includes cases with zero backdating). The information that is available is in the following table.
Expenditure on pension credit backdating | |
Total expenditure (£ million) | |
2003-04 (October to March) | 80 |
2004-05 | 330 |
2005-06 | 190 |
2006-07 | 150 |
Notes: 1. Care should be taken when interpreting the table. The Department does not routinely collect information on expenditure on backdated payments and it has been estimated using information on average awards and backdating periods. Backdating periods have been estimated by comparing information on the date entitlement starts and the date pension credit is put into payment. Estimated backdating periods therefore include unknown periods of time that are due to processing, evidence gathering and verification work which routinely accompany every claim for pension credit. 2. All figures are consistent with the 2008 Budget Report. 3. Estimates are rounded to the nearest £10 million. 4. Pension credit was introduced in October 2003, so expenditure figures are only available from this date. Source: Experimental Statistics of Pension Credit on flows and DWP Accounting Systems |
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