§ Mr. Ian McCartneyTo ask the Secretary of State for Education and Employment what, was the original estimated cost of implementing the jobseeker's allowance, giving a breakdown of expenditure; and what is the940W current estimated cost of implementing the jobseeker's allowance, giving a breakdown. [40840]
§ Mr. ForthIn November 1994 the one-off administrative costs of implementing the jobseeker's allowance were estimated at £270 million. The main cost areas were:
£million Information technology and allied costs 110 Training 70 Premises 45 Project management and Communications 45 Revisions to these estimates are being concerned as part of this year's public expenditure survey.
§ Mr. Jim CunninghamTo ask the Secretary of State for Education and Employment what will be the final cost of installing the new computer system designed to implement the jobseeker's allowance. [39675]
§ Mr. Forth[holding answer 3 November 1995]: Two new computer systems will support the implementation of the jobseeker's allowance. The labour market system will replace current systems in ES jobcentres used to support vacancy filling and advisory work. The estimated cost of developing and installing this system is around £70 million.
The JSA payments system is being developed to pay JSA, by girocheque or automated credit transfer. The estimated cost of implementing JSAPS is about 941W £80 million. This figure covers expenditure which has already been incurred and planned expenditure to March 1999.
§ Mr. CunninghamTo ask the Secretary of State for Education and Employment what will be the cost of delaying the introduction of the jobseeker's allowance by six months; and what will be the interim position of those claiming the allowance. [39671]
§ Mr. Forth[holding answer 3 November 1995]: The cost of delaying the introduction of jobseeker's allowance by six months is estimated to be £25 million to £30 million, in terms of overall benefit expenditure.
People who are unemployed between April and October 1996 will continue to receive unemployment benefit or income support. When JSA is introduced in October 1996, existing claimants will be moved to JSA. There will be transitional arrangements to protect such claimants against cash loss. Those for whom benefit was payable immediately before 8 April 1996 will be entitled to a maximum of 12 months' contributory benefit. Those for whom benefit was not payable at that time will be entitled to a maximum of six months' contributory benefit.
§ Mr. CunninghamTo ask the Secretary of State for Education and Employment what has been the cost of using outside consultant agencies in reviewing the implementation of the jobseeker's allowance. [39672]
§ Mr. Forth[holding answer 3 November 1995]: An external review of the project to implement the jobseeker's allowance was carried out earlier this year. The review cost was £88,000 including VAT.
§ Mr. CunninghamTo ask the Secretary of State for Education and Employment when the computer systems designed to implement the jobseeker's allowance will be ready. [39674]
§ Mr. Forth[holding answer 3 November 1995]: The computer systems designed to implement jobseeker's allowance will be ready for the introduction of jobseeker's allowance in October 1996.
§ Mr. CunninghamTo ask the Secretary of State for Education and Employment what was the original timetable for the implementation of the jobseeker's allowance; what is the current timetable; and if she will make a statement. [39678]
§ Mr. Forth[holding answer 3 November 1995]: It was originally planned that jobseeker's allowance would be introduced in April 1996. It was clear in May 1995 that the implementation as originally planned would entail risks to the smooth delivery of the new service to unemployed people. We therefore decided to introduce it in October 1996 and we are holding to that timetable.
§ Mr. CunninghamTo ask the Secretary of State for Education and Employment what considerations led to the decision to reduce unemployment benefit in April 1996 and introduce jobseeker's allowance in October 1996. [39670]
§ Mr. Forth[holding answer 3 November 1995]: Unemployment benefit is not to be reduced in April 1996.
The Government have always been concerned to ensure that implementation of jobseeker's allowance, which is a large and complex undertaking, should not entail risks to 942W the smooth delivery of services to unemployed people. We therefore took the decision to defer implementation of jobseeker's allowance until October 1996 when it became evident that implementation in April 1996 would have involved an unacceptable level of risk.