HC Deb 25 April 1988 vol 132 cc35-6W
Mr. Grocott

To ask the Secretary of State for Social Services what is his estimate of the net cost to public funds if men retired at 60 years and the job vacancies were filled by people currently long-term unemployed.

Mr. Scott

Our best estimate of the net cost to public funds of a men's pension age of 60 is over £3,000 million at 1985–86 prices. This assumes that two-thirds of vacancies are filled and that 75 per cent. of them are filled

Old benefit system from April 1988: Average rent and rates for six inner London boroughs Married couple with two children aged 4 and 6
Gross earnings Tax NI FIS Child benefit Rent Rent rebate Rates Rate rebate Fares to work Free school meals Free welfare milk Net weekly spending power
60.00 0.00 3.00 28.70 14.50 22.92 19.16 10.24 6.95 5.85 2.55 1.83 91.68
70.00 0.00 4.90 23.70 14.50 22.92 17.91 10.24 6.55 5.85 2.55 1.83 93.13
80.00 1.22 5.60 18.70 14.50 22.92 16.66 10.24 6.15 5.85 2.55 1.83 94.36
90.00 3.92 6.30 13.70 14.50 22.92 15.41 10.24 5.75 5.85 2.55 1.83 94.51
100.00 6.62 7.00 8.70 14.50 22.92 14.16 10.24 5.35 5.85 2.55 1.83 94.46
110.00 9.32 9.90 3.70 14.50 22.92 12.65 10.24 4.78 5.85 2.55 1.83 91.78
120.00 12.02 10.80 0.00 14.50 22.92 10.57 10.24 3.97 5.85 2.55 0.00 89.76
130.00 14.72 11.70 0.00 14.50 22.92 7.27 10.24 2.67 5.85 2.55 0.00 91.56
140.00 17.42 12.60 0.00 14.50 22.92 3.97 10.24 1.37 5.85 2.55 0.00 93.36
150.00 20.12 13.50 0.00 14.50 22.92 0.67 10.24 0.00 5.85 2.55 0.00 95.09
160.00 22.82 14.40 0.00 14.50 22.92 0.00 10.24 0.00 5.85 0.00 0.00 98.27
170.00 25.52 15.30 0.00 14.50 22.92 0.00 10.24 0.00 5.85 0.00 0.00 104.67

by people from the unemployment register. If all vacancies were filled, and all by people previously unemployed, the net cost would be about £2,000 million. These figures are currently under review.