Select Committee on Deregulation and Regulatory Reform Eighth Report


Numbers affected

1.    To give some idea of scale, and it must be emphasised that these are estimates - there are currently around 5000 carers over 65 in receipt of ICA at full rate or as a top-up to their RP - this represents just over 1% of the total live load. Additionally, just under 10,000 are entitled to ICA , but do not receive it because they have RP which exceed the rate of ICA. Around 50% of the total will not be receiving income related benefits. They will all be protected at the point of change.

2.    An estimated 4500 ICA recipients aged 64 each year will reach age 65, and continue to be so entitled. They fall into two groups; the rules are different for entitlement to CP in each.

Overlapping benefit cases

3.  (i)  Around 3000 will cease to receive ICA when RP is awarded but will retain entitlement. Around half - 1500 - derive no financial benefit from their entitlement to ICA.

(ii)  The other half, around 1500, will be on income related benefits which will include CP. At present this group retain entitlement to ICA even after failing to meet the conditions, (although this entitlement does not represent financial gain) but stand to lose CP if circumstances change. The continuation of CP is dependent upon whether there is still a disabled person in receipt of the qualifying benefits. This means that as things stand, these people lose CP when the disabled person dies or the qualifying benefits cease.

(iii)  It is estimated that if it were not for the concession, ICA entitlement (and thereby CP) would terminate in around 15% of cases a year, so in around 100 cases. Around half of these terminations are for death of the disabled person or cessation of qualifying benefits. They stand to lose entitlement to CP now. About one third will be for cessation of caring - around 33 or so. These are the people in this group who will no longer be eligible for CP under the new rules.

ICA recipients

4.  (i)  Of the group turning 65, around one third, 1500, will continue to receive ICA. In many cases they will be receiving a top-up to their RP rather than the full rate of ICA.

(ii)  Around half, 750 or so, will also be on income related benefits, in receipt of ICA and CP.

(iii)  If the same % terminations are assumed as in para 12 above, 15% of the group, 100, will lose entitlement to ICA, and a further 100 both ICA and CP.

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