WELFARE: Benefit reform fails to cut costs
Thursday 13 February 1997
The Government had hoped to make savings of pounds 415m, out of spending of around pounds 7.5bn, through introducing the incapacity benefit in April 1995 to replace sickness and invalidity benefits, because the new system had tighter rules designed to bar many people from the benefit. However, savings were pounds 135m less than forecast because the Benefits Agency was unable to process as many cases as planned and was unable to disallow as many claims as expected.
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