HL Deb 06 November 1995 vol 566 cc181-2WA
Lord Gainford

asked Her Majesty's Government:

When they will announce their further plans for earnings top-up—the proposed pilot benefit for working people without dependent children.

The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)

The Secretary of State has today announced his decisions on the eight areas in which the earnings top-up pilot scheme will operate from October 1996. He has also placed in the Vote Office the draft rules of the scheme.

The rules setting out the scheme list by postcode the eight pilot areas in which earnings top-up will be paid; four at a higher rate (Scheme B) and four at a lower rate (Scheme A). The two benefit rates are intended to test the relative effectiveness of different levels of assistance in meeting the aim of the scheme; to help lower-paid people to move into work and be better off there.

The areas have been selected from an original shortlist using wholly objective criteria related to unemployment rates, vacancy rates, population density and operational feasibility. They are areas from which we expect to be able to draw conclusions about the effectiveness of this approach if extended nationally.

The eight pilot areas

Scheme A (Lower Rate)These pilot areas will give an estimated average weekly boost to income of £16 for single people under 25, and £24 for couples:

  • Newcastle upon Tyne TTWA1, including parts of Stanley, Consett, Newburn, Gateshead, Shields Road, Felling, West Moor, Blaydon-on-Tyne, Cramlington, Whitley Bay, Wallsend, North Shields, and Prudhoe.
  • Castleford and Pontefract 'TTWA, including parts of Knottingley, and Normanton;
  • Wakefield and Dewsbury TTWA, including parts of South Elmsall, Hemsworth, and Batley;
  • Barnsley TTWA, including part of Wombwell, and Hoyland.
  • Southend TTWA, including parts of Brentwood, Rayleigh, Burnham-on-Crouch, Basildon, Canvey Island, Stanford-le-Hope, Grays, and Tilbury.
  • Bangor and Caernarfon TTWA, including parts of Penygross and Beaumaris;
  • Conwy and Colwyn TTWA, including parts of Colwyn Bay, Llanwrst, and Landudno;
  • Denbigh TTWA;
  • Dolgellau and Barmouth TTWA;
  • Holyhead TTWA, including parts of Llangefni and Amlwch;
  • Shotton; Flint and Rhyl TTWA, including parts of Mold and Holywell;
    • WA 182
  • Wrexham TTWA, including parts of Cefnmawr and Llangollen.

Scheme B (Higher Rate)These pilot areas will give an estimated average weekly boost to income of £18 for single people under 25, and £25 for couples:

  • Sunderland TTWA, including parts of Birtley, Chester-le-Street, Houghton-Le-Spring, Peterlee, East Boldon, and Washington.
  • Doncaster TTWA, including parts of Thorne.
  • Bournemouth TTWA, including parts of Wimbourne, Christchurch, and Ringwood.
  • Perth and Crieff TTWA;
  • Dumbarton TTWA, including parts of Alexandria, and Helensburgh;
  • Stirling TTWA.

We expect that about 20,000 people will benefit from the earnings top-up pilot. The four areas which have been selected as controls for the evaluation of the pilot are:

  • Middlesbrough TTWA;
  • Hartlepoole and Stockton-on-Tees TTWA;
  • Rotherham and Mexborough TTWA;
  • Worksop TTWA;
  • Southampton and Isle of Wight TTWA;
  • Blaenau Gwent and Abergavenny TTWA;
  • Brecon TTWA;
  • Llandeilo TTWA;
  • Llanelli TTWA;
  • Monmouth TTWA;
  • Pontypool and Cwmbran TTWA.

Notes:

1TTWA = Travel to work area. These are areas in which 75 per cent. of the population working in the area also live there, and vice versa.

The rules of the scheme will be published in final form once there has been an opportunity for Parliament to consider the proposals.