§ Mr. Frank FieldTo ask the Secretary of State for Social Security what would have been the cost of upgrading unemployment benefit to the same level as invalidity benefit, including increases for adult and child dependents, for each year since 1987; what would be the cost of doing so for the years up to 1995–96; and what would be the cost per year of paying unemployment benefit at such increased rate for the full duration of unemployment.
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§ Mr. Burt[holding answer 19 April 1993]: Estimated costs for year prior to 1993–94 are not available and could be obtained only at disproportionate cost.
The estimated net cost, at 1993–94 prices, of upgrading unemployment benefit to invalidity benefit levels is £740 million in 1993–94 and 1994–95, and £730 million in 1995–96.
The estimated cost of extending the increased unemployment benefit to cover the full duration of unemployment is an additional £750 million per annum at 1993–94 prices. This estimate is less certain as the characteristics of those people who currently exhaust their entitlement to unemployment benefit are not available and broad assumptions based upon the characteristics of unemployed people not in receipt of unemployment benefit have been used.
The estimates do not take account of any behavioural changes associated with such upgrading of unemployment benefit.