HC Deb 23 November 1994 vol 250 cc171-2W
Mr. Battle

To ask the Secretary of State for Social Security how much will be saved from the social security budget by reducing the entitlement of 18 to 24-year-olds from current levels of unemployment benefit to the under-25s' level of income support at current rates of youth unemployment from April 1996 for each subsequent year.

Mr. Roger Evans

The estimated savings arising from reducing the entitlement to 18 to 24-year-olds from the current levels of unemployment benefit to the under-25s' level of income support based on current levels of youth unemployment are £25 million in 1996–97 and £30 million in 1997–98.

Notes:

  1. 1. Savings rounded to the nearest£5 million.
  2. 2. 1996–97 savings are in 1996–97 prices. 1997–98 savings are in 1997–98 prices.

Table 1: The average incomes of pensioner units by source, 1974–1992
a) Pensioner couples Average income Growth Average income from each source as
£ per week July 1992 prices percentage percentage percentage of total income
Income Source 1974 1979 1992 1974–1979 1979–1992 1974 1979 1992
Earnings 32.10 26.10 18.00 -19 -31 -21 16 8
Benefit income 77.80 87.70 107.10 13 22 50 53 45
Occupational pension 18.40 17.50 45.40 -5 160 12 11 19
Other income 0.50 0.90 1.40 86 65 * 1 1
Total gross income 155.70 164.80 237.80 6 44 100 100 100
Deductions 22.20 23.80 31.60 7 33 14 14 13
Total net income1 133.50 141.00 206.20 6 46 86 86 87
Total net income AHC2 116.60 122.20 190.70 5 56 N/A N/A N/A
1 Median net income, at 1992 prices, was £107.60 in 1974, £115.10 in 1979 and £162.90 in 1992.
2 Median net income after housing costs, at 1992 prices was £103.20 in 1974, £97.90 in 1979 and £145.80 in 1992.

b) Single Pensioner Average income Growth Average income from each source as
£ per week July 1992 prices percentage percentage percentage of total income
Income Source 1974 1979 1992 1974–1979 1979–1992 1974 1979 1992
Earnings 8.10 5.90 5.10 -27 -14 -10 7 4
Benefit income 51.80 58.00 70.80 12 22 64 69 56
Investment income 12.00 9.30 25.20 -23 172 15 11 20
Occupational pension 8.70 10.10 24.50 16 142 11 12 19
Other income 0.70 0.60 0.70 -14 29 1 1 1

3. Estimates assume that contributory benefit is paid for 6 months in 1996–97 and 1997–98: ie they assume that jobseekers allowance has been introduced in full.

4. Estimates use the May 1994 unemployment benefit statistics and the 1990–91–92 Family Expenditure Surveys.

Savings figures assume transitional protection in 1996–97.