HC Deb 25 July 1991 vol 195 c850W
Mr. Meacher

To ask the Secretary of State for Social Security what savings he estimates have accrued to the Exchequer each year since each of the following measures was introduced, both in current prices and at 1991 prices:(a) the abolition of earnings-related supplement to unemployment benefit, (b) the taxation of unemployment benefit, (c) the abolition of the child additions to unemployment benefit, (d) the abolition of the lower rate unemployment benefits, (e) the abatement of unemployment benefit for occupational pensions, (f) the extension from six to 26 weeks in the disqualification period, (g) the introduction of actively seeking work rules and restart interviews, (h) the reduced entitlement for students,(i) the full extent normal rule, and (j) the higher contributions conditions introduced in the Social Security Act 1988.

Mr. Jack

The available information is set out in the table. Savings for each year since implementation cannot be calculated given the effects of other benefit changes and economic factors. Details of savings from the taxation of benefits, restart interviews and the full extent normal rule are not available.

Measure Estimated savings (£ million) in year of implementation Estimated savings in year of implementation at 1991 prices
Abolition of earnings related supplement 390 695
Abolition of child dependency additions 3 5
Abolition of half/three quarter rates of UB1 20 26
Abatement of UB on account of an occupational pension 25 45
Extension from six to 13 weeks of the disqualification period 21 29
Extension from 13 to 26 weeks of the disqualification period 37 45
Actively seeking work2 100 115
Benefits for students restricted to summer vacation 9 12
Withdrawal of benefits for students 79 391
New contribution conditions 10 12
1 Unemployment benefit.
2 Estimated savings also take into account other changes to UB legislation made in the 1989 Social Security Act.
3 Revised estimated savings for first full financial year following implementation.