HC Deb 01 April 1980 vol 982 cc139-40W
Mr. Kenneth Baker

asked the Secretary of State for Social Services how many unemployed persons received the earnings-related supplement in each of the

(1) (2) (3)
Lowest ERS Payable Highest ERS Payable Average ERS Paid
£ £ £
1975 0.01 9.37 5.56
1976 0.01 10.27 6.48
1977 0.01 12.18 7.43
1978 0.01 15.42 8.32
1979 0.01 16.25 8.54
1980 0.01 17.67 8.80

The figures in column 3 for the years 1975–79 are the average payments which were being made on a day in May of each year. The 1980 figure is the estimate for the financial year 1979–80.

Mr. Kenneth Baker

asked the Secretary of State for Social Services what saving will be made for each of the categories of earnings-related supplements, which in total is estimated in the White Paper through their withdrawal to produce a total saving of £130 million in 1982–83.

Mr. Prentice

The figure quoted in the White Paper is the estimated net saving at "1979 survey prices", assuming the introduction of an employer's statutory sick pay scheme in April 1982, and after taking account of increased expenditure on supplementary benefit. The extent of the latter depends on the relative rates of national insurance and supplementary benefits, and a revised estimate, taking account of the November 1980 rates which my right hon. Friend announced in his statement to the House on 27 last five years; and how many will receive it in the current year.

Mr. Prentice

The number of unemployed persons receiving earnings-related supplement on a day in May in each of the years was as follows:

1975 171,000
1976 245,000
1977 223,000
1978 204,000
1979 176,000
*1980 190,000
* The 1980 figure is the estimate for the financial year 1979–80.

Mr. Kenneth Baker

asked the Secretary of State for Social Services what were the highest, lowest and average amounts of earnings-related supplements paid to the unemployed in the last five years and the estimate for the current year.

Mr. Prentice

The information requested is as follows:

March—[Vol. 981, c. 1658–78]—is given in the financial memorandum to the Social Security (No. 2) Bill published on 28 March. The latter shows an estimated gross saving in cash terms of £360 million in 1982–83, given the current benefit structure. The earnings-related supplement in respect of each benefit within this total is:

£ million
Sickness Benefit 185
Injury Benefit 15
Maternity Allowance 35
Unemployment Benefit 110
Widows' Allowance 15

The gross saving would be offset by an estimated additional expenditure of £75 million on supplementary benefit.