§ Dr. McDonaldasked the Secretary of State for Social Services what would be the net cost at 1979–80 rates of (a) increasing flat-rate unemployment benefit to the level of the long-term national insurance benefit rate after six months unemployment, and (b) of paying unemployment benefit at this rate for a further year after the present time limit and so long as unemployment benefit lasts, together with an estimate of the impact these measures would have on the number of unemployed obtaining supplementary benefit.
§ Mr. Prentice[pursuant to his reply, 25 July 1979, c. 311]: The net cost at 1979–80 rates of increasing flat-rate unemployment benefit to the level of the long-term national insurance benefit rate after six months unemployment to the end of the present 312 days of benefit would be £60 million; and this would result in a reduction of 3,000 in the number of unemployed people claiming supplementary benefit. If the increased rate of benefit were paid after six months until the end of two years on benefit, the net cost would be 114W and what effect this would have on the numbers of each of the main groups in receipt of supplementary benefit.
§ Mr. Prentice[pursuant to his reply, 25 July 1979, c. 310]: The net additional cost of increasing all contributory and non-contributory non-means-tested benefits to £34 for a, single person and £50 for a married couple, with proportionate increases for other rates, but leaving supplementary benefit scale rate unchanged, would be about £7 billion in 1979–80.
The effect on numbers in receipt of supplementary benefit would be of the following order:
£80 million and the reduction in people claiming supplementary benefit would be 50,000. If the increased rate of benefit were paid for as long as unemployment lasted, the figures would be £140 million and 90,000.
§ Dr. McDonaldasked the Secretary of State for Social Services what would be the net cost at 1979–80 rates of paying flat-rate unemployment benefit for (a) an extra year and (b) as long as unemployment lasts; and what would be the impact of these measures on the number of unemployed claiming supplementary benefit.
§ Mr. Prentice[pursuant to his reply, 25 July 1979, c. 311]: The net cost at 1979–80 rates of paying flat-rate unemployment benefit for an extra year would be £40 million, and this would result in a reduction of 40,000 in the number of unemployed people claiming supplementary benefit. If unemployment benefit was paid for as long as unemployment lasted, the figures would be £70 million and 75,000 respectively.
§ Mr. Fieldasked the Secretary of State for Social Services if he will publish in 115W the Official Report the proportion of those unemployed who do not receive unemployment benefit because of a contribution deficiency because of (a) self-employment, (b) full-time education and (c) other reasons.
§ Mrs. Chalker[pursuant to her reply, 27 July 1979, c. 670]: On 9 November 1978, the latest date for which information is available, 18 per cent. of a sample of claimants to unemployment benefit or credits were not in receipt of unemployment benefit because of a contribution deficiency. The latest information available about the causes of contribution deficiency relates to a sample of men unemployed in May 1976. At that time about 45 per cent. of the contribution deficiencies were attributed to self-employment, about 30 per cent. to full-time education, and about 25 per cent. to other reasons.
§ Mr. Fieldasked the Secretary of State for Social Services if he will publish in the Official Report the proportion of registered unemployed receiving unemployment benefit who were affected by the 85 per cent. earnings ceiling for the most recent date available.
§ Mrs. Chalker[pursuant to her reply, 27 July 1979, c. 670]: On 9 November 1978, the latest date for which information is available, it is estimated that 10 per cent. of recipients of unemployment benefit were affected by the 85 per cent. earnings ceiling.