Benefits

HC Deb 13 November 1996 vol 285 cc261-2W

Sir Ralph Howell

To ask the Secretary of State for Social Security what would be the estimated reduction in expenditure on(a) social security benefits, (b) welfare benefits and (c) free school meals for social security benefits recipients if all those aged 18 to 65 years, who were able to work, earned (A) £120, (B) £140 and (C) £160 per week gross of tax and national insurance contributions and 16 and 17-year-olds earned (i) £60, (ii) £70 and (iii) £80 per week gross. [2002]

Mr. Roger Evans

The information is set out in the tables.

Table 1 shows the net benefit savings if all the claimant unemployed earned the levels stated.

Table 2 shows the additional net benefit savings if those currently in work with earnings below the levels stated were to earn the stated value, and work 30 hours or more a week. All figures must be regarded as broad estimates of the potential benefit savings.

Table 1: Net benefit savings if the unemployed claimant earned £120, £140 or £160 per week
	Earnings
	£120	£140	£160
Net benefit savings	£6,900 million	£7,300 million	£7,600 million

1. 1 Estimates are based on 2.1 million unemployed, at 1996–97 prices.
2. 2.Estimates are rounded to the nearest £100 million.
3. 3.All claimants unemployed are assumed to work 30 hours or more a week.
4. 4.All partners of claimants unemployed who are identified as in work and earning below the level stated are assumed to work for 30 hours a week at the new level of earnings.
5. 5.Net benefit savings include the value of free school meals.
6. 6.Estimates exclude expenditure implications for welfare benefits.
7. 7.Sixteen and 17-year-olds are deemed to earn £60, £70 or £80 per week in place of £120, £140 and £160 respectively.
8. 8.Estimates are based on figures from the 1996 departmental report, the 1995 Quarterly Statistical Enquiry and the 1994 Family Resources Survey uprated to 1996–97 prices.

Table 2: Net benefit savings if those currently in work earning less than the value earned £120, £140 or £160 per week
	Earnings
	£120	£140	£160
Net benefit savings	£1,000 million	£1,300 million	£1,600 million

1. 1.Estimates are set at 1996–97 prices.
2. 2.Estimates are rounded to the nearest £100 million.
3. 3.All those affected are assumed to work at least 30 hours a week.
4. 4.Net benefit savings include the value of free school meals.
5. 5.Estimates exclude expenditure implications for welfare benefits.
6. 6.Sixteen and 17-year-olds are deemed to earn £60, £70 or £80 per week in place of £120, £140 and £160 respectively.
7. 7.Estimates are based on the 1995 Quarterly Statistical Enquiry and the 1994–95 Family Resources Survey uprated to 1996–97 prices.