§ Mr. FlynnTo ask the Secretary of State for Social Security what is his most recent calculation on the financial consequences of the proposed back-to-work bonus.
§ Mr. Roger EvansOur latest estimate of the financial implications of the back-to-work bonus is that the scheme will bring an estimated increase in benefit expenditure of around £20 million in 1996–97 and around £50 million in 1997–98. However, when behavioural effects are taken into account, the scheme is likely to be broadly cost neutral.
Notes:
- 1. Assumes 2.4 million unemployed.
- 2. Estimates rounded to nearest £10 million in cash prices.