§ Mr. MeacherTo ask the Secretary of State for Social Security (1) if it is his intention to proceed with the one-year holiday from national insurance contributions for employers who take additional workers from among those unemployed for more than two years, as announced in his November 1994 Budget; and what is the start date for the holiday; [5406]
(2) if he will estimate the effect in terms of reducing the claimant count of unemployed people of a one-year holiday from national insurance contributions for employers who take additional workers from among those unemployed for more than two years; [5407]
(3) if he will estimate the cost to the Exchequer of a one year holiday from national insurance contributions for employers who take additional workers from among those unemployed for more than two years. [5408]
§ Mr. HealdI refer the hon. Member to the reply my right hon. Friend the Secretary of State gave to my hon. Friend the Member for Ribble Valley (Mr. Evans) on 28 November,Official Report, columns 643–45. This measure will cover lone parents, carers and certain trainees as well as the long-term unemployed. Based on the working assumption that employers of around 130,000 new employees will benefit from reduced national insurance payments, it is expected to cost around £50 million in a full year. This does not include the impact on 671W the level of unemployment as we cannot estimate with certainty the response of employers and the size of any displacement effect.