Unemployment-related Benefit Claims (Hansard, 27 November 1996)

§ Mr. Forth

[holding answer 21 November 1996]Responsibility for the subject of the question has been delegated to the Employment Service agency under its chief executive. I have asked him to arrange for a reply to be given.

Letter from M. E. G. Fogden to Mr. Peter Hain, dated 27 November 1996: The Secretary of State has asked me to reply to your question about the estimated annual administrative cost for processing new claims and terminating claims for unemployment benefit. This is something which falls within the responsibilities delegated to me as Chief Executive of the Agency. It may be helpful if I explain that advisers in our Jobcentres take new claims to unemployment benefits in order to check jobseeker's eligibility for benefit, to ensure that they are available and actively seeking employment and to offer help and advice in their search for suitable employment. Claims may be terminated for a variety of reasons. For example, the jobseeker may have found work or started to claim another benefit. It is important to mention that these processes form only a part of the total process for administering unemployment related benefits claims. Unfortunately the costs of these particular elements of the process are not available because we do not capture expenditure for individual functions. However, the latest available information for the cost of administering unemployment benefit as published in the Departmental Report for 1995–96 was £577 million. In 1995–96 the planned unit costs for making a claim to benefit as part of the Annual Performance Agreement was £29.14 246W With the introduction of Jobseeker's Allowance the Employment Service continues to be involved in the public interface of the new claims process through the New Jobseeker Interview. The Benefits Agency are responsible for determining and processing benefit payments. They also have responsibility for claim termination. I hope this is helpful.