HC Deb 15 December 1980 vol 996 cc20-1W
Mr. John Evans

asked the Secretary of State for Employment what were the major changes made in July 1978, January 1979 and July 1979 in his Department's scheme which enabled unemployed people to be able to travel to obtain work.

Mr. Jim Lester

The Manpower Services Commission operates two schemes which are designed to encourage people who are unemployed, or under threat of redundancy, to look for and to move to employment away from home. These are the job search scheme and the employment transfer scheme. Following criticism in 1976 from the Public Accounts Committee, the MSC reviewed its schemes to make them more cost effective. As a result of this review the following major changes were made to these schemes during the months in question17 July 1978 New rules were introduced about the timing of applications to exclude from the schemes those workers who had clearly not been encouraged by the availability of assistance to take up work away from home. Applications for assistance, under the JSS, must now be made before the applicant travels to the new area; and applications for assistance, under the ETS, must now be made before the applicant starts work and before dependants and household effects are moved to the new area. Before 17 July 1978, applications for assistance under both schemes could be made up to six months after the event. In addition, to reduce the opportunity for abuse of the ETS, arrangements were made to pay the higher rate of transfer grant for applicants from the assisted areas, in quarterly stages over a year and not, as previously, in a lump sum. 1 January 1979 A new rule was introduced that people, who have successfully completed a course of higher education, within six months of the date on which they attend an interview for employment, or start work, will not be eligible for assistance under the JSS and the ETS. (The relevant date was later amended to the date of offer of employment.) This condition does not apply to mature students aged 26 or over when they started their course. This rule was introduced as the MSC considers that students of higher education seeking their first career appointments accept the need to be mobile, and the additional incentive of the ETS is therefore unnecessary. Also the rates of the various grants and allowances available under both schemes were increased and the pay limit for the new or prospective employment was raised. 1 July 1979 From this date all applicants for assistance from the JSS and ETS must satisfy the rule that there are no local unemployed people, registered in the new area, who are suitable for the job which the applicant is seeking or taking up. Also all applicants must have no reasonable prospects of employment in their home areas. These two conditions which had previously applied only to those whose moves originated in the non-assisted areas, are designed to ensure that local unemployed people will not be deprived of employment opportunities, and that the move is necessary for the applicant to find work. Changes were made to the rules about payment of the higher rate of transfer grant and disturbance allowance previously payable to eligible applicants who lived in the assisted areas. The higher rate of transfer grant is now restricted, with limited exceptions, to those who move out of a special development area or development area into a place of lower assisted status. Disturbance allowance is now paid to applicants from an SDA who move into a place of lower assisted status.

A new eligibility condition was also introduced that applicants for assistance under ETS must intend to resettle permanently in the new area.

Mr. John Evans

asked the Secretary of State for Employment what are the criteria which determine eligibility for financial assistance from his Department for an unemployed person obtaining work in another area; and what changes in these criteria he has introduced since may 1979.

Mr. Jim Lester

The Manpower Services Commission provides financial assistance under the employment transfer scheme for people who move home to take up employment in another area. I am informed by the MSC that the main eligibility conditions for this assistance are as follows:

  1. 1. The applicant must be unemployed or under threat of redundancy.
  2. 2. The applicant must not have reasonable prospects of employment in the home area.
  3. 3. The applicant must have resided in Great Britain for three months before the transfer.
  4. 4. The applicant must not have successfully completed a course of higher education within six months of obtaining the new job. (This condition does not apply to mature students).
  5. 5. The application must be made before the applicant starts work in the new area and before household effects and dependants, if any, are moved to the new area.
  6. 6. The applicant must intend to resettle permanently in the new area and the new job must offer satisfactory prospects of permanent resettlement.
  7. 7. The applicant's family partner must not already have been offered employment in the new area or have other commitments there.
  8. 8. There are no local unemployed people registered in the new area who are suitable for the job which the applicant is taking.
  9. 9. The new employment is not seasonal.
  10. 10. The new employment is full time, under a contract of service and is in Great Britain.
  11. 11. The wage or salary of the new employment is not more than the pay limit (currently £6,264 per annum).
  12. 12. The new employment is beyond normal daily travelling distance of the applicant's home.

Major changes to eligibility conditions were made on 1 July 1979, and I have given details in my previous reply to the hon. Member's question on this subject. Other significant changes to the ETS criteria, which have taken place since May 1979 have been: The increase in the pay limit on 1 March 1980, and in the rates of grants and allowances on 1 April 1980. Details were given to the House on 11 and 31 March. On 4 August 1980 special measures were introduced to assist those affected by British Steel closures in Consett, Llanwern, Port Talbot and Scunthorpe. Details were given to the House on 14 July. Additionally there have been many minor changes designed to clarify the eligiblity conditions and to meet changing circumstances.