§ Mr. Arthur Lewisasked the Secretary of State for Social Services whether he will give an estimate of the net loss or gain to Government expenditure if the whole of the existing unemployed were 180W to take over the situations of an equal number of persons between the age of 60 and 65 years going on to early retirement at normal pension rates and the existing unemployment and social welfare payments to the unemployed ceased.
§ Mr. OrmeIn order to obtain sufficient people in employment over 60 to equal the total of registered unemployed under 60 it has had to be assumed that all the employed men aged between 60–64 would give up work together with the men and women who are currently deferring their retirement and, in addition, some of those working and already in receipt of retirement pensions. If all these groups were to draw retirement pensions the net cost to public expenditure would be of the order of £500 million. However, the vacancies thus created would be unlikely to provide an effective match for the travel-to-work areas and particular capabilities of those currently registering as unemployed.
§ Mr. Arthur Lewisasked the Secretary of State for Social Services what have been the annual costs of all payments being made to the unemployed as on 15 March; and on the basis that 1½ million elderly people between 60 years of age were given retirement rights and normal retirement pensions what this would cost at 15 March.
§ Mr. OrmeThe cost of payments to the unemployed for the financial year 1978–79 at November 1978 benefit rates would be about £1,320 million. Assuming that the minimum age of retirement for men were reduced to 60 and that no man or woman over that age were to defer retirement, an additional 1.4 million persons would be in receipt of retirement pension at a net annual cost of about £2,800 million at the November 1978 benefit rates. This number includes those who are currently registering as unemployed or who are in receipt of invalidity pension, and others who have retired early on occupation pensions or ceased work under the job release scheme.