HC Deb 31 July 1980 vol 989 cc828-9W
Mr. Greville Janner

asked the Secretary of State for Social Services what he estimates to be the financial cost to the nation in unemployment benefit of 1,800,000, 2,000,000, 2,250,000, 2,500,000 and 3,000,000 unemployed, respectively.

Mrs. Chalker

In his report on the draft of the Social Security Benefits Up-rating Order 1980 (Cmnd 7971), the Government Actuary estimated that expenditure on unemployment benefit in 1980–81 might amount to £992 million on the assumption of an average of 1,600,000 unemployed (excluding school-leavers); and that a change of 100,000 in the average level of unemployment would alter the surplus of the National Insurance Fund by about £180 million in 1980–81. Of this figure of £180 million, some £65 million to £70 million relates to expenditure on unemployment benefit.

Thus, for an average level or unemployment (excluding school-leavers) of 1,800,000 in 1980–81, expenditure on unemployment benefit might amount to about £1,130 million. Calculations made on a pro-rata basis for higher assumed levels of unemployment would inevitably be subject to an increasingly significant margin of error.

Mr. Ralph Howell

asked the Secretary of State for Social Services, further to his reply to the hon. Member for Norfolk, North, Official Report, 18 July, c. 742, when figures showing categories and numbers of people living on low incomes in 1978 will become available; and what is the cause of the delay.

Mrs. Chalker

I would refer my hon. Friend to my right hon. Friend's reply to the hon. Member for Walsall, North (Mr. Winnick) on 13 November 1979 and my reply to the hon. Member for Wolverhampton, North-East (Mrs. Short) on 11 July 1980.—[Vol. 973 c.565–6; Vol. 988 c. 347.]

Mr. William Hamilton

asked the Secretary of State for Social Services what was the total paid in unemployment benefit in June 1979 and June of the current year, respectively.

Mrs. Chalker

I regret that an estimate for unemployment benefit expenditure for June 1980 is not yet available.

It is not possible directly to compare one month's estimated unemployment benefit expenditure with another month because the amount will depend on the number of "pay days" in the month. This number varies from month to month and is also affected by the incidence of bank holidays when benefit may be paid in advance.

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