HC Deb 29 February 1996 vol 272 cc705-6W
Mr. Morley

To ask the Secretary of State for Social Security if he will estimate the cost in 1996–97 and 1997–98 of extending entitlement to non-means-tested jobseeker's allowance from six months to one year. [18236]

Mr. Roger Evans

Extending entitlement to contributory jobseeker's allowance from six months to one year would be equivalent to restoring the reduction in entitlement to contribution-based benefit from 12 months to six resulting from the replacement of unemployment benefit with jobseeker's allowance in October 1996. The current estimates for the savings from this reduction are £30 million in 1996–97 and £145 million in 1997–98. These figures are lower than previous estimates due to revised forecasts of unemployment and changes to the transitional arrangement for those in receipt of unemployment benefit when jobseeker's allowance is introduced.

Notes:

  1. 1. Estimates assume 2.1 million unemployed claimants (GB) and 405,000 unemployment benefit claimants in the absence of jobseeker's allowance.
  2. 2. Savings are estimated using 1991–92–93 FES data and 1994 unemployment benefit statistics.
  3. 3. Savings are rounded to the nearest £5 million.
  4. 4. 1996–97 savings are in 1996–97 prices. 1997–98 savings are in 1997–98 prices.
  5. 5. Figures assume transitional protection in 1996–97.