§ Mr. David Howellasked the Secretary of Slate for Social Services what studies his Department has 273W undertaken of the number of registered unemployed who would be worse off, after making allowance for the costs of travel and taxation, if they took a job; and if he will estimate, to the nearest 100,000, the probable size of this number.
§ Dr. BoysonThe latest estimate of unemployed people whose net in-work income would be lower than their out-of-work income is derived from the DHSS cohort study of unemployed men in 1978. This study was based on a sample of just over 2,000 men who registered as unemployed in the autumn of 1978. About six per cent. of the men within the sample received benefits which exceeded their net earnings. Allowing for the receipt of occupational pensions and other income changes, 9 per cent. appeared to have higher incomes out of work than in work.
Further work is currently being undertaken to provide an up-to-date estimate, which is expected to show lower proportions because of the abolition of earnings-related supplement to unemployment benefit and other factors.