§ Sir Frederic Bennettasked the Secretary of State for Social Services how much money would be saved in payments of unemployment benefit at the standard weekly rate if an additional 850,000 men were employed.
§ Mrs. ChalkerThe standard weekly rate of unemployment benefit for a single person is £20.65. If there were 850,000 men receiving unemployment benefit, all at the standard rate without increases for a wife or other adult dependant or children or earnings-related supplement, and they all became employed, the benefit saving would be about £17½ million a week or over £900 million a year. In November 1980, there were about 678,000 men receiving unemployment benefit.
§ Dr. McDonaldasked the Secretary of State for Social Services (1) what would be the net cost of paying unemployment benefit at 1981–82 benefit rates so long as unemployment lasts; and what would be the extra tax yield assuming the taxation of benefit;
(2) what would be the net cost at 1981–82 benefit rates, after taking into account savings of supplementary benefit, 676W of paying unemployment benefit for an extra (a) 12 months and (b) two years; in each case, what would be the net cost assuming that unemployment benefit were raised to the level of long-term national insurance benefits; and in all cases what would be the additional tax yield once unemployment benefit is treated as taxable income.
§ Mrs. Chalker[pursuant to her reply, 27 July 1981, c. 345.]: The net additional cost in social security benefits in 1981–82 and the additional tax yield if benefits paid to the unemployed were taxed is estimated as
£ million Social security benefit £ million Additional tax yield Paying unemployment benefit as long as unemployment lasts 400 35 Paying unemployment benefit for an extra 12 months 300 20 Paying unemployment benefit an extra 12 months at the retirement pension rate 450 30 Paying unemployment benefit an extra 2 years Could only be obtained at disporportionate cost Paying unemployment benefit an extra 2 years at the retirement pension rate