HC Deb 17 February 2000 vol 344 c663W
Mr. Matthew Taylor

To ask the Secretary of State for Social Security what is his estimate of the total annual net cost of restoring benefit entitlements to 16 and 17-year-olds; what assumptions underlie this estimate; and if he will make a statement. [110061]

Angela Eagle

We believe that every young person should have the opportunity to achieve their potential. That is why our aim is to engage 16 and 17-year-olds in education, training or work with training, rather than starting their adult lives dependent on the benefits system.

Departments are working together to develop and implement the proposals in the Government White Paper "Learning to Succeed" and the Social Exclusion Unit's report "Bridging the Gap". The recently announced Connexions Service will help, support and guide young people through their teenage years including those most at risk from disadvantage.

The estimated annual cost of restoring full entitlement to Social Security benefits to 16 and 17-year-olds would be £100 million at present rates. These costs do not make any allowance for possible changes in labour market behaviour as a result of these changes.

Notes:

1. Figure is rounded to the nearest £50 million.

2. Figure is based on data taken from the 1997–98 Family Resources Survey.

3. Figure assumes benefit would be paid at benefit rates for 16 and 17-year-olds.

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