HC Deb 20 February 1995 vol 255 cc69-70W
21. Mr. Nicholls

To ask the Secretary of State for Social Security what plans he has to encourage the private sector to invest in Post Office automation in relation to the work of his Department.

Number of unemployed claimants by benefit entitlement
Total UB only, or contribution-based JSA only UB and IS, or JSA based both on contributions and on income IS only, or income-based JSA only No benefit (NI credits only)
381 132 1,763 266
Latest actual estimates August 1994 2,542 15 per cent. 5 per cent. 69 per cent. 10 per cent.
Estimates for 1996–97 assuming JSA 350 100 1,660 300
system 2,410 15 per cent. 4 per cent. 69 per cent. 12 per cent.
Estimates for 1997–98 assuming JSA 240 100 1,730 340
system 2,410 10 per cent. 4 per cent. 72 per cent. 14 per cent.

Notes:

1. UB = Unemployment Benefit. IS = Income Support. JSA = Jobseeker's Allowance. NI = National Insurance.

2. Assumes that in 1996–97 and 1997–98 the personal rate of Unemployment Benefit is higher than the personal allowance of Income Support for people aged 25 or over.

3. Assumes in 1996–97 and 1997–98 claimant unemployment of 2.4 million and an Unemployment Benefit caseload of 500,000.

4. Estimates for 1996–97 and 1997–98 rounded to the nearest 10,000. Current figures rounded to the nearest 1,000. Percentages rounded to the nearest percentage point. Individual figures may not sum due to rounding.

5. Assumes that claimants who lose entitlement to Jobseeker's Allowance continue to sign for credits. If they do not, then the claimant total falls.

Mr. Lilley

I am very keen to see the involvement of the private sector in the project to introduce an automated system for paying benefit at post offices. We are therefore looking to the private sector to design, build, finance and operate systems for automation of post offices, and the introduction of benefit payment cards, under the terms of the private finance initiative.

Some 90 companies responded to a notice published in the Official Journal of the European Communities in August last year. On 9 December, Official Report, column 385, my hon. Friend was able to announce the names of five companies, some of which lead consortia, which have been invited to develop proposals.