§ Mr. Ralph Howellasked the Prime Minister what is her estimate of the immediate effect on the unemployment trap, and of the long-term effects on wage rates, employment opportunities and public spending of paying supplementary benefit at the long-term rates to all claimants over the age of 60 years.
§ The Prime MinisterMen aged over 60 are not normally at risk from the unemployment trap. We do not expect this to change following the extension of the long-term rate to them. Nor do we anticipate that the extension will have any long-term effects on wage rates or employment opportunities. The extra benefit cost is estimated at £23 million for the current financial year and £27 million in 1984–85, the first full year.