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8.
Disability pensioner with former working record. Single APW
The disability pensioner in Great Britain, with a sufficient contribution record, will
receive Incapacity Benefit long term basic rate as the permanent benefit. In addition
there will be an age dependent supplement, which is largest for young people. It is
also possible to receive additional benefits from the Disability Living Allowance
according to need. This is disregarded here. A 35 year old person will, in 1997,
receive 62.45 GBP/week in Incapacity Benefit and 6.60 GBP/week in age addition,
in total 69.05 GBP/week or 3,591 GBP a year. This will also be the disposable
income.
The net compensation percentage is 3,591 / 12,500 x 100 = 28.7.
The decrease in disposable income compared to the situation without disability is
71.3 per cent. There might be 
topping-up' from Income Support.
9.
Disability pensioner without former working record. 
 Single APW'
If there is no former work or an insufficient contribution record the disabled person
would be eligible for Severe Disablement Allowance, a non contribution based tax
free benefit of 37.75 GBP per week. There is also an age dependent supplement,
which is largest for young people. At the age of 35 years this addition is 13.15
GBP/week. In total the disability pensioner can receive 50.90 GBP/week or 2,647
GBP a year from Severe Disablement Allowance. This will also be the disposable
income.
The 
net compensation percentage' (relative to the APW) is 2,647 / 12,500 x 100 =
21.2.
The 
decrease' in disposable income, relative to that of the APW, is 78.8 per cent.
The Severe Disablement Allowance can be 
topped-up' from Income Support.

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