The budget allocation of £60 million was provided as a first step towards meeting the Government's commitment, as outlined in the Programme for A Government of Renewal, to pay the legally determined entitlements of married women to social welfare equality payments.
Following an examination of the recent High Court decision in what effectively amounts to two "test cases" heard in June 1994, the Government is introducing arrangements to give full effect to the decision of the court. Under these arrangements, the estimated 70,000 married women involved will receive payments on the basis of the rules applied to married men in the period of delay in implementing the 1979 Equal Treatment Directive.
These payments will consist of increases for adult and child dependants and unemployment assistance and they will also receive the transitional payments as provided for in the court's decision. In addition, compensation will be payable based on the increase in the consumer price index from the date of entitlement in December 1984 onwards to the date on which the payments are made.
The total costs of these arrangements are estimated at some £260 million, of which up to £200 million will be paid by the end of 1995. The remaining payments, estimated at £60 million will be paid from January 1996 onwards over as short a period as possible. All of the married women involved will receive payments on account by September next at an overall cost estimated at £100 million. Further payments on account will be made up to the end of December 1995 at a cost of £90 million.