HC Deb 14 February 1975 vol 886 cc247-8W
Mr. Newton

asked the Secretary of State for Social Services what is the present cost to the Exchequer, in a full year, of the earnings-related part of unemployment benefits; what is the net income of a married man with two children under 11 years of age who is earning the average national wage; and to what the same man's earnings-related unem- ployment benefit—together with any other social security allowances he and his family may typically expect to receive—would amount.

Mr. O'Malley

In 1973–74, the cost to the National Insurance Fund of earnings-related supplement of unemployment benefit was £23 million. The Exchequer supplement represents about 15 per cent. of the income of that fund. Using £50 a week as an estimate of current national average earnings, weekly income net of income tax—taking personal allowances only into account—and national insurance contributions, and including family allowance, would be £38.92; and on the assumption that throughout the tax year 1973–74 the man received weekly earnings at the level of the national average in October 1973–i.e., £40.92—he would be entitled to earnings-related supplement of £8.55 a week, payable in addition to flat-rate unemployment benefit of £18.40 and family allowance of 90p.