§ Mr. Greville Jannerasked the Secretary of State for Employment how much is the estimated cost of the job release scheme as at present planned; and by (a) how much, and (b) what percentage he estimates that such cost would be increased were it to be extended to non-assisted areas.
§ Mr. GoldingThe job release scheme is a measure new to Great Britain and so we have no previous experience on which to base estimates of take-up. Our best judgment is that the gross cost of the scheme, which is to operate from 3rd January 1977 for six months in assisted areas, is likely to be about £70 million. The net cost, when account is taken of savings of unemployment benefit and other savings to public funds, would then be about £27 million. If the present scheme were to be extended to non-assisted areas the estimated additional gross cost would be about £60 million and additional net cost about £22 million. These figures represent an increase of both gross and net costs of over 80 per cent.