HC Deb 12 December 1995 vol 268 c628W
Mrs. Peacock

To ask the Secretary of State for Social Security what reforms of the benefit system he is planning to help unemployed people back to work. [5037]

Mr. Roger Evans

Throughout the review of the social security system, helping people to return to work has been a central focus. In July, we increased family credit by £10 per week for those working 30 hours or more. Last month, we published the draft rules for the earnings top-up scheme, to help those without dependent children. From April 1996 we are smoothing the transition into work through a four-week extension of housing costs. We are encouraging employers to take on those who have been unemployed for more than two years, by introducing a "holiday" from national insurance contributions. We are now building on existing work incentives. In his statement on the Budget, my right hon. Friend the Secretary of State announced an increase of £20 in the child care disregard in family credit and disability working allowance. Child care costs to the value of £60 will now be disregarded during benefit assessments. Helping people to return to work is the best way to improve people's living standards and the best way to improve their prospects.