HC Deb 25 July 1989 vol 157 cc621-2W
Mr. Nellist

To ask the Secretary of State for Employment how the 50-plus jobstart scheme is to be monitored; what targets he has for numbers participating in the scheme; what is the likely cost of the 50-plus jobstart scheme to his Department; and if he will make a statement.

Mr. Lee

The 50-plus jobstart scheme is a variation of the existing jobstart scheme. It aims to help people over 50 to take up part-time work as a means of re-establishing themselves in the labour market.

Under 50-plus jobstart people over the age of 50 who have been unemployed for more than 12 months may be eligible for an allowance of £20 per week if they take up certain part-time jobs paying not more than £2.57 per hour. The scheme is being piloted in four areas—Lothian and the Borders, Dudley and Sandwell, Leeds and London South. The pilots started on 26 June 1989 and will run for one year. No targets have been set for the number of participants.

The number of people applying and being accepted for the allowance will be monitored. The pilots are being funded from within the overall cost of the main jobstart programme.

Mr. Nellist

To ask the Secretary of State for Employment if the participation of income support claimants in the action credit and 50-plus jobstart schemes is intended to be purely voluntary; whether refusal to participate will affect claimants eligibility for benefits; and what measures his Department is taking to get over-50's to participate in the 50-plus jobstart scheme.

Mr. Lee

Participation of all claimants in the action credit scheme and in 50-plus jobstart is voluntary. Refusal to participate will not of itself affect entitlement to benefit. The 50-plus jobstart scheme is being publicised by means of leaflets and posters in unemployment benefit offices and jobcentres in the four pilot areas.

Mr. Nellist

To ask the Secretary of State for Employment what are the minimum pay, training and employment conditions which action credit agencies are required to meet in providing part-time jobs for income support claimants; when the statement of the terms and conditions of employment of action credit participants will be available; and if he will make a statement.

Mr. Nicholls

Action credit is an employment scheme, with participants paid the rate for the job. It will allow participants to build on their ET training through practical work with an employer.

Action credit agencies are required to ensure that conditions of employment meet the relevant legislative standards. Each participant will have a personal document outlining their terms and conditions. I welcome the testing of this new initiative and hope that unemployed people in the pilot areas will make full use of it.

Mr. Nellist

To ask the Secretary of State for Employment why action credit agencies are required to pay employers' national insurance contributions for their employees participating in action credit; whether his Department expects employers to pay national insurance contributions for participants in similar schemes where employees are earning below the lower earnings limit; and if he will make a statement.

Mr. Nicholls

Action credit agencies will pay class 1 national insurance contributions only on the lump sum that participants receive when they leave the scheme. Class 1 national insurance contributions are not payable where an employee earns less than the lower earnings level.

Mr. Nellist

To ask the Secretary of State for Employment why an earnings ceiling of £43 a week has been set for action credit participants; what, for participants working 23 hours a week, would be the hourly payment; how the earnings ceiling relates to the full extent normal rule; and what are his Department's target figures for participation in action credit.

Mr. Nicholls

The earnings ceiling of £43 per week has been set to ensure participants are not required to pay national insurance contributions on a weekly basis. Hourly earnings will be paid at the local rate for the job. There is no connection between the earnings ceiling on action credit and the full extent normal rule.

The scheme can help up to 300 participants in each pilot area, greatly enhancing the existing options for employment training leavers. The purpose of the pilot will be to test the attractiveness of the scheme; thus my right hon. Friend will not be setting numerical targets for these areas.