§ Mr. Nicholas Bakerasked the Secretary of State for Social Services what evidence he has that the present system of reduction in unemployment benefit on days where part-time paid employment is taken acts as a disincentive to the unemployed who work part-time or full-time; and if he has any proposals to alter the system.
§ Mr. PrenticeMy hon. Friend is no doubt referring to the rule under which unemployment benefit is withdrawn for any day on which the claimant's earnings exceed 75p. The reason for the rule is that it would be inappropriate to pay benefit to someone working and earning a reasonable wage, but equally it would be unreasonable to deny benefit to someone doing a minor spare-time job which could be carried out in addition to full-time work. We have no evidence that this rule deters unemployed people from taking up more substantial work either on a part-time or full-time basis.