HC Deb 18 June 1981 vol 6 c425W
Mr. Grylls

asked the Secretary of State for Social Services whether he will make a study of the 18-point plan on the birth and growth of businesses sent to him by the Institute of Directors; whether, in accordance with the recommendations in that plan, he will take steps to encourage individuals who are unemployed to set up their own businesses; what is the period of time during which such individuals would be able to claim unemployment benefit while setting up such businesses; and if he will make a statement.

Mr. Patrick Jenkin

[pursuant to his reply, 11 June 1981, c. 178]: I have read with interest the documents which the Institute of Directors had sent earlier to my right hon. Friend the Secretary of State for Industry. The suggestion that unemployment benefit should continue in payment, transitionally, when an unemployed person sets up his own business is the one with which my Department is concerned. I must tell my hon. Friend that it is a basic condition for the receipt of unemployment benefit that the claimant must be unemployed and available for work; and, for that and other reasons, I do not think that the payment of unemployment benefit would be appropriate provision for the situation my hon. Friend has in mind. However, Ministers are, collectively, considering whether some other form of provision for that situation might appropriately be made. My hon. Friend will know that family income supplement is payable for a self-employed man with a dependent child who is working at least 30 hours a week, or 24 hours for a single parent, and who can show that his income falls below the prescribed level.