HM TREASURY 11
                                                               17 March 1998

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                         BUDGET FOR DISABLED PEOPLE

A radical package of measures to help people with disabilities and long-term
illnesses who want to work was announced today by Chancellor Gordon Brown.

This package represents a new and inclusive approach.  In the past,
Governments' have been content to define people with disabilities by what
they cannot do, rather than what they are able to do, condemning many people
with disabilities to a life of low expectation and dependency.   This package
shows that the Government's philosophy of offering "employment opportunity to
all" extends to everyone in society.

* From October 1999 a new Disabled Person's Tax Credit (DPTC) will replace
  the Disability Working Allowance (DWA).  The DPTC will be more generous
  than DWA:

  -    a lower taper of 55 per cent (down from 70 per cent);

  -    higher earnings thresholds for couples of 90 Pounds (presently 77.15
       Pounds) and for single people of 70 Pounds (presently 57.85 Pounds);

  -    DPTC will meet 70 per cent of eligible childcare costs.  Maximum
       amounts covered increased to 100 Pounds (from 60 Pounds) for families
       with one child and 150 Pounds (from 100 Pounds) for families with two
       or more children.  DPTC will meet 70 per cent of these costs;
  
* Child credit for under 11's in DWA (and the DPTC) will be increased by 2.50
  Pounds (to 15 Pounds) from November this year;

* A new Personal Advisor service, offering advice and support to people with
  disabilities and long-term illness who want to find a job (including action
  plans, training, work placement and work trials).  This will be the corner-
  stone of the New Deal for Disabled People, announced in the July 1997 Budget
  and financed with 195 million Pounds of windfall tax receipts.  Pilots will
  begin in this autumn, with a view to a national roll-out from April;

* A new linking rule to take the financial risk  out of taking a job which
  may not work out.  From October this year, former claimants of long-term
  incapacity benefits  who lose a job within one year of taking it will be
  able to return to Incapacity Benefit at whatever rate they were previously
  being paid.  This addresses a major disincentive to work in the benefits
  system, in which disabled people may lose as much as 40 Pounds in accrued
  benefit entitlement on taking a job;

* Lifting the 16 hour limit on voluntary work in Incapacity Benefit, to
  enable claimants to gain experience of working before taking a further
  step into paid employment.
  
  
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