§ Baroness Jegerasked Her Majesty's Government:
What changes they propose in the supplementary benefit claims of people who are sacked or leave their jobs voluntarily, how many applicants are involved at present and what provision is made for their dependants.
1137WA
§ Lord TrefgarneRegulation 8 of the Supplementary Benefit Requirements Regulations requires supplementary benefit to be reduced for a maximum period of six weeks if a person is disqualified (or would be disqualified) from receiving unemployment benefit because of, broadly speaking, voluntary unemployment. The standard rate of deduction is 40 per cent. of the single person's scale-rate but a lower deduction (half the standard rate) is made in certain circumstances, prescribed by the regulations, where there might otherwise be hardship. No deductions are made from the benefit awarded for wives and dependants.
The latest information about the number of claimants affected by this rule derives from the 1981 Supplementary Benefit Statistical Enquiry. This showed that on one day in December 1981 there were some 14,600 cases with such deductions, of which 4,900 were at the lower rate. The Social Security Advisory Committee has been asked to consider proposals to amend this regulation so that the lower rate of deduction would apply only in cases where there is pregnancy or serious illness in the family. This is because it has been found in practice that the present regulations have resulted in the lower deduction being applied in many cases where there was no real risk of hardship at all. Thus, while only 2 per cent. of all deductions were at the lower rate before the present regulations were introduced in November 1980, this had risen to 34 per cent. by December 1981.
The Government believe that most people would agree that to give up work voluntarily or refuse employment without good cause should attract a substantial benefit penalty unless, exceptionally, this would cause real hardship.