§ Mr. Meacherasked the Secretary of State for Social Services what would be the gross annual cost of extending entitlement to flat-rate unemployment benefit from one year to 18 months; and what would be the estimated offset reduction in supplementary benefits and the tax drawback, if any.
§ Mr. DeanA precise estimate cannot be made but, based on recent unemployment experience, the gross cost might be of the order of £20 million a year. Unemployment benefit is not taxable but the net cost after adjustment of supplementary benefit might be about £13 million a year.
§ Mr. Bishopasked the Secretary of State for Social Services what is the current weekly cost of the benefits paid to the unemployed and those on short-time working, including unemployment, redundancy payments, social security allowances, supplementary benefit, family income supplement, and other benefits.
§ Mr. DeanIt is estimated that the current weekly expenditure on unemployment benefit and supplementary allowances to the unemployed is approximately £7½ million. These are the only social security benefits to which people may become entitled because they are unemployed. Payments from the Redundancy Fund are a matter for my right hon. Friend the Secretary of State for Employment.