HC Deb 31 March 1981 vol 2 cc137-8
3. Mr. Hooley

asked the Secretary of State for Social Services what is the current value of the standard rate of unemployment and sickness benefits, expressed as a percentage of average industrial earnings; and how this percentage figure compares with the figure in March 1979.

The Minister for Social Security (Mr. Hugh Rossi)

The standard rate of unemployment and sickness benefit is 25.2 per cent. of the estimated average net earnings of full-time adult male manual workers in January 1981, the latest date for which figures are available; the comparable figure in March 1979 was 25.6 per cent.

Mr. Hooley

Is the Minister aware that the situation will become much worse when the earnings-related supplement is abolished? What will he do to counteract that appalling decision?

Mr. Rossi

It is, of course, appreciated that when the earnings-related supplement is abolished, on average there will be a difference of about £9 a week for those who have been receiving it. However, for those who would suffer hardship, the supplementary benefit safety net is always available.

Mr. Marlow

As there is a growing reluctance among some young people to stay on at school or in further education generally or to go on to the work experience scheme because of the relatively high level for young people of supplementary benefit and unemployment pay, will my hon. Friend look into the situation with view, perhaps, to reducing supplementary benefit and unemployment pay for young people and increasing the amount of money available to those on the work experience scheme on a nil-zero sum basis?

Mr. Rossi

The whole question of young people is being examined by the Secretary of State for Employment.

Mr. Rooker

Does the Minister intend to maintain the ratio between unemployment and sickness benefits and average earnings? If he does not, why not?

Mr. Rossi

That matter is also being examined.