§ Mr. John Grantasked the Secretary of State for Employment what is the basis of the calculations for the increased grants and allowances from 1 April under the employment transfer and job search schemes and, in particular, the extent to which inflation since the last increases and anticipated inflation, has been taken into account.
§ Mr. Jim LesterI am informed by the Manpower Services Commission that these grants and allowances were increased by the amount judged necessary to maintain broadly, the inducement effect of the schemes. The average increase was 18.7 per cent. although some of the larger grants, such as the transfer grant, were increased by 25 per cent. Over the period since the rates were last increased in January 1979 the retail price index rose by 22 per cent. and that was taken into account. Some payments under the schemes—for example, those in respect of train fares and the cost of furniture removals—are related to actual expenditure.