HC Deb 14 March 1986 vol 93 cc605-6W
Mr. Sheerman

asked the Paymaster General if he will list the dates and nature of the changes in eligibility rules for the community programme since its inception and the effect on the number of people eligible immediately prior to and subsequent to these changes.

Mr. Lang

Since the inception of the community programme in October 1982 there have been two main changes of relevance. In November 1982 priority for entry was given to those aged 18 to 24 who have been unemployed for six of the last nine months and those aged 25 or over who have been unemployed for 12 of the last 15 months. In addition, all applicants must have been unemployed continuously for two months prior to entering the programme. From October 1984 those qualifying for priority entry were also required to be in personal or indirect receipt of an appropriate state benefit.

It is not possible to state the precise effect of these changes on numbers.

Mr. Sheerman

asked the Paymaster General what has been the level of the community programme allowance in each year since it began; what percentage rises these represent year-on-year; and what have been the corresponding rises in the retail prices index and in average earnings.

Mr. Lang

The community programme was introduced on 1 October 1982 and replaced the community enterprise programme. Under the programme, workers are paid the locally agreed hourly rate for the job, not an allowance. The reimbursable wages of workers (except managers and supervisors) were subject to a maximum average of £60 per week until the end of September 1984. From October 1984 the average has been £63 per week, which represents an increase of 5 per cent.

The corresponding percentage rises in the retail prices index, and in average earnings since the introduction of the community programme in October 1982 were as follows:

Retail price Average earnings
Per cent. Per cent.
October 1982 to October 1983 +5.0 +8.7
October 1983 to October 1984 +5.0 +8.2
October 1984 to October 1985 +5.4 +6.0
October 1985 to January 1986 +0.6 +2.2

Mr. Sheerman

asked the Paymaster General how many places have been available in each year since the community programme began; how many of these have been filled; and what has been (a) the gross cost and (b) the net cost after benefit savings of the programme, at constant prices, based on its first year of operation.

Mr. Lang

The community programme was introduced on 1 October 1982 and replaced the community enterprise programme.

Initially funds were made available to provide for 130,000 filled places. In March 1985 the programme was expanded by a further 100,000 places, and the target figure now stands at 230,000 filled places to be achieved by the end of May 1986.

The number of filled places at the end of each year since 1982 are as follows:

March Filled places
1983 39,100
1984 134,400
1985 161,400

The gross cost and net cost after benefit savings of the programme, at constant 1982–83 prices, its first year of operation are as follows:

Gross costs Net cost (after benefit savings)
£ million £ million
1982–83* 177 †115
1983–84 381 250
1984–85 486 330
1985–86‡ 605 405
* Includes expenditure on community enterprise programme.
† Not calculated separately, but assumed to be equivalent to 65 per cent, of gross costs as in 1983–84.
‡ Forecast.