HC Deb 12 June 1981 vol 6 cc223-4W
Miss Richardson

asked the Secretary of State for Social Services what would be the net cost at 1981–82 benefit levels of (a) making good the 5 per cent. abatement in unemployment benefit, (b) raising unemployment benefit to the retirement pension level after six months' unemployment and paying it so long as unemployment lasts and (c) extending the long-term supplemenary benefit rate to the unemployed; and, in each case, what would be the net cost once the benefits are taxable, as proposed in the Finance Bill.

Mr. Rossi

The additional cost in social security benefits in 1981–82 taking each item separately would be:

  1. (a) about £60 million.
  2. (b) about £700 million.
  3. (C) about £135 million assuming the qualification of one year in receipt of supplementary benefit.

The additional tax yield, if benefits paid to the unemployed were taxed, would be:

  1. (a) about £15 million.
  2. (b) about £70 million.
  3. (c) difficult to estimate precisely but small.