HC Deb 12 December 1994 vol 251 cc535-7W
Mr. Dewar

To ask the Secretary of State for Social Security what are the elements of the Jobseekers Bill which promote the assistance of persons without a settled way of life.

Mr. Roger Evans

Clause 25 in the Bill allows the Resettlement Agency to complete its task of disengaging the Government from the running of resettlement units by funding more appropriate provision provided by voluntary organisations, local authorities or private organisations.

Mr. Dewar

To ask the Secretary of State for Social Security what is his policy in respect of people who make themselves voluntarily unemployed or who refuse job vacancies continuing to receive automatic hardship payments under the allowance.

Mr. Roger Evans

Sanctioned claimants will not receive automatic benefit payments under the jobseeker's allowance. Claimants who are not in vulnerable groups will receive no benefit for the first two weeks of a sanction; thereafter, they may receive hardship payments at a reduced rate if they can demonstrate that they or their partner would otherwise suffer hardship. Claimants in vulnerable groups—those with children, who are sick or pregnant or have a sick or pregnant partner, or who have caring responsibilities—may have access to hardship payments throughout the period of the sanction.

Mr. Dewar

To ask the Secretary of State for Social Security how much of the expected reduction in expenditure on benefits of around £140 million in 1996–97 and £270 million in 1997–98 as a result of the introduction of the jobseekers allowance will arise from each clause of the Jobseekers Bill

Mr. Roger Evans

The information is set out in the table. Estimates do not take account of tax or behavioural effects.

Ms Harman

To ask the Secretary of State for Social Security what is his assessment of the number of people who will give up work as a result of their unemployed partners being eligible for non-means-tested benefit for only six months instead of 12 months under the jobseekers allowance.

Mr. Roger Evans

Of the 165,000 people estimated to lose entitlement to contribution-based jobseekers allowance as a result of the length of contributory entitlement being reduced to six months, 55,000 are estimated to have partners with earnings. It is not possible to provide an estimate of the number of these partners who may decide to give up work once contributory benefit is lost. However, any such effect is likely to be small as most couples in this position will be substantially better off with one partner in work than with neither.

We will also be introducing measures which are designed to encourage the partners of jobseekers allowance and income support claimants to remain in work, including increasing the partner's hours threshold from 16 to 24 hours, and introducing the back to work bonus.

Notes: Estimated using the policy simulation model with 1990–91–92 family expenditure survey data and the 1993 and 1994 unemployment benefit statistics. All estimates rounded to the nearest 5,000.