§ Mr. Gordon Brown
asked the Secretary of State for Social Services what is the first-year and full-year cost of increasing unemployment benefit by £1 and £5 per week in 1985–86 and 1986–87 (a) net of the cost of indexation and (b) net of the cost of indexation and savings in other benefits as a direct result of these measures.
§ Mr. Newton
[pursuant to his reply, 26 February 1986, c. 611]: The estimated costs of increasing unemployment benefit in November 1985 by the amount shown, after deducting the cost of increasing the benefit in line with the retail prices index, would have been as follows:
Cost/Saving After allowing for savings on other benefits Amount of increase 1985–86 1986–87 1985–86 1986–87 £ million £1 (-20) (-50) (-15) (-35) £5 50 150 35 100
The actual increase in the standard rate of unemployment benefit for a single person due to indexation was £2, so that an increase of £1 would have produced a saving.
The estimated costs of increasing unemployment benefit by these amounts in July 1986, after deducting the cost of the proposed increase of 35p in the standard rate of unemployment benefit for a single person, is as follows:
Cost After allowing for savings on other benefits Amount of increase 1986–87 1987–88 1986–87 1987–88 £ million £1 20 30 15 20 £5 140 200 100 150