Mike Kane – 2016 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Mike Kane on 2016-01-20.

To ask the Secretary of State for Work and Pensions, what estimate he has made of the proportion of the gross working premium of insurers which was required to fund the Diffuse Mesothelioma Payments Scheme in (a) 2014-15 and (b) 2015-16.

Justin Tomlinson

In 2014/15 the Diffuse Mesothelioma Payment Scheme (DMPS) levy was charged at £32m which represented 2.2% of employers’ liability gross written premium (EL GWP). The actual cost of the DMPS in 2014/15 was £24.2m, and the additional £7.8m collected has been carried forward into 2015/16.

On 12 January 2016 the Department announced that it anticipated the gross cost of the DMPS in 2015/16 to be £31m. This represents 2% of EL GWP. However, the amount actually levied on the insurance industry for 2015/16, taking into account the £7.8m carried forward, is £23.2m, which represents 1.5% of EL GWP.

Note: The proportions quoted above use the most recently available EL GWP data in any one year. Due to the time taken to collect and verify this data, the EL GWP figure used to calculate the proportion the levy represents will be two years old. For example, for the 2014/15 levy the EL GWP data is from 2012.