HC Deb 25 January 1995 vol 253 c264W
Mr. Flynn

To 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 Evans

Our 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. 1. Assumes 2.4 million unemployed.
  2. 2. Estimates rounded to nearest £10 million in cash prices.