§ Mr. Meacherasked the Secretary of State for Social Services how many persons have been subject to disqualification of unemployment or supplementary benefit in each of the last 10 years as a result of voluntary unemployment; what was the breakdown of the main grounds each year; what was the saving net of tax each year; and what he estimates will be the saving from extension to 13 weeks in future.
§ Mr. NewtonThe numbers of people subject to disqualification of unemployment benefit as a result of "voluntary unemployment" under section 20(1) of the Social Security Act 1975 are given in the table.
Year Leaving voluntarily Misconduct Others Total 1976 396,429 150,133 4,170 550,732 1977 439,632 140,361 6,279 586,272 1978 448,961 131,379 5,517 585,857 1979 416,318 121,932 8,402 546,652 1980 350,303 134,870 9,674 494,847 1981 245,779 103,172 5,267 354,218 1982 255,822 96,318 3,024 355,164 1983 261,284 94,696 3,226 359,206 1985 298,206 98,738 9,420 406,364 Notes:
1. Figures for 1984 are not available.
2. "Others" are refusal of suitable employment, neglect to avail of an opportunity of employment, failure to carry out reasonable official recommendations to assist to find work, refusal or failure to avail of approved training.
Claimants are not disqualified for receiving supplementary benefit because of voluntary unemployment, but instead their benefit is subject to a voluntary unemployment deduction. Available statistics do not show the detailed reason for the reduction. The following table shows the number of cases with such deductions.
Year Number 1977 377,000 1978 338,000 1979 364,000 1980 260,000 1981 195,000 1982 182,000 1983 299,000 Notes:
1. Figures for 1976, 1984 and 1985 are not available.
2. The figures have been estimated from information in the annual statistical inquiry, on the assumption that deductions apply for, on average, four weeks.
3. The figures include deductions made pending a final decision and it is estimated that 40 per cent. would be refunded when a decision went in the claimant's favour.
4. The figures in the two tables overlap where supplementary benefit is paid to people who are disqualified for receiving unemployment benefit.
The financial effect net of tax each year is not available, but it is estimated that the net reduction in benefit expenditure in 1985 is around £25 The further net reduction in benefit expenditure which might follow from 470W the proposed change in the rules has not yet been finally assessed, but we estimate it provisionally to be of the order of £25 million to £30 million.