Previous Section Home Page

(a) nominal change of some 170 per cent.,

(b) real percentage growth of about 16 per cent.;

Pay rates of non-industrial civil servants

(a) nominal change of 128 per cent.,

(b) real change of minus 3 per cent.

I regret that information on industrial grades is not available.

16 to 18-year-olds

Mrs. Dunwoody : To ask the Secretary of State for Employment what percentage of 16 to 18-year-olds are in education and training in (a) the United Kingdom, (b) Germany, (c) Japan and (d) the USA.


Column 898

Mr. McLoughlin : Latest estimates of the percentage of 16 to 18-year -olds in education and training in the United Kingdom, Germany, Japan and the USA are given in the following table.


Participation in education and training<1> of 16 to 18-year-olds     

percentages                                                          

                                           |All full and             

                                           |part-time<2>             

---------------------------------------------------------------------

United Kingdom<3>             |1988        |69                       

                              |1989        |70                       

Germany (Federal Republic)<4> |1988        |92                       

Japan<5>                      |1988        |87                       

USA<5>                        |1987        |81                       

<1> Includes apprenticeships, YTS and similar schemes.               

<2> Includes higher education for some 18-year-olds.                 

<3> Includes estimates for those studying only in the evening and    

for private sector further and higher education, including training  

courses with employers.                                              

<4> Includes compulsory part-time education for 16 and 17-year-olds. 

<5> Includes private sector higher education.                        

Source: Department for Education.                                    

Labour Statistics

Mr. Harry Greenway : To ask the Secretary of State for Employment how many people are currently in work ; and if she will make a statement.

Mr. McLoughlin : The work force in employment in the United Kingdom stood at 25,361,000 in June 1992--1,798,000 higher than in March 1983, the low-point in employment during the last recession.

Mr. Tony Lloyd : To ask the Secretary of State for Employment what percentage of those leaving employment training (a) entered further education or training, (b) entered a job club, (c) found voluntary work and (d) became self-employed in the latest year for which figures are available.

Mr. McLoughlin : The information requested is given in the following table :


Employment Training Great Britain: January-December 1991                      

leavers outcomes-3 months after leaving                                       

                                            |per cent. of all                 

                                            |respondents                      

------------------------------------------------------------------------------

Entered other Government training programme                                   

  or full-time education/training           |4                                

Entered a job club                          |2                                

Found voluntary work                        |3                                

Self-employed (including EAS)               |6                                

Source: ET National follow-up survey                                          


Column 899

Mr. McLoughlin : Information about employment action outcomes is not yet available.

Mr. Tony Lloyd : To ask the Secretary of State for Employment what percentage of those attending a job interview guarantee got the job in the latest year for which figures are available.

Mr. McLoughlin : 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. Fogden to Mr. Tony Lloyd, dated 12 November 1992 :

As the Employment Service is an Executive Agency, the Secretary of State has asked me to write to you direct to respond to your Parliamentary Question about the Job Interview Guarantee. This is something which falls within the responsibilities delegated to me as Chief Executive of the Agency.

You asked what percentage of those attending a Job Interview Guarantee got the job in the latest year for which figures are available. In 1991/92, 20 of people who went forward for an interview under this initiative were placed into jobs.

I hope this is helpful.

As decided by the Administration Committee of the House of Commons, Chief Executive replies to written Parliamentary Questions will now be published in the Official Report. I will also place a copy of this letter in the Library of the House.

Employment Training

Mr. Tony Lloyd : To ask the Secretary of State for Employment (1) what percentage of those leaving employment training gained a vocational credit in the latest year for which figures are available ;

(2) what percentage of those leaving employment training gained a vocational qualification in the latest year for which figures are available.

Mr. McLoughlin : The information requested is given in the table :


Employment training                                

Great Britain: January to December 1991            

leavers gained a qualification or credit           

(Per cent. of all respondents)                     

---------------------------------------------------

Gained a full qualification             )    |26   

)                                         |<1>29   

Gained a credit towards a qualification )    |7    

                                                   

                                                   

Awaiting results                          |2 |2    

<1> Information not available separately for       

credits and full qualifications.                   

Source: ET national follow-up survey.              

Mr. Tony Lloyd : To ask the Secretary of State for Employment what percentage of those leaving employment training found employment (a) immediately, (b) within three months and (c) within six months, excluding those who started self-employment, in the latest year for which figures are available.

Mr. McLoughlin : The information requested is given in the table :


Employment training Great Britain:                                   

January-December 1991 leavers outcomes                               

(Per cent. of notified leavers)                                      

                           |Leavers in full-time                     

                           |and part-time work                       

---------------------------------------------------------------------

Immediately on leaving     |<1>19                                    

Three months after leaving |<2>24                                    

Six months after leaving   |<3>25                                    

<1>Base for calculating percentages excludes not stateds (5 per      

cent. of all leavers) and leavers whose destination was not known (  

14 per cent. of all leavers).                                        

<2>Base for calculating percentages excludes not stateds (15 per     

cent. of all leavers).                                               

<3>Base for calculating percentages excludes not stateds (4 per      

cent. of all leavers).                                               

Sources:                                                             

Immediate destinations-ET leavers database based on training         

provider returns.                                                    

Three and six month activity-ET National follow-up survey based on   

questionnaire responses.                                             

Mr. Tony Lloyd : To ask the Secretary of State for Employment what percentage of those leaving employment training remained unemployed (a) three months later and (b) six months later in the most recent period for which figures are available.

Mr. McLoughlin : The information requested is given in the table :


Employment training Great Britain: January-December 1991         

leavers outcomes, three months after leaving                     

(Per cent. of all respondents)                                   

                           |<1>Respondents who                   

                           |were unemployed                      

-----------------------------------------------------------------

Three months after leaving |61                                   

Six months after leaving   |57                                   

<1>Unemployed and claiming benefit, unemployed and not claiming  

benefit and at a job club.                                       

Source: ET national follow-up survey                             


Column 901

Sunday Working

Mr. David Shaw : To ask the Secretary of State for Employment if she will make a statement on the role of the wages councils in determining rates of pay for Sunday working.

Mr. Michael Forsyth : The wages councils have no such role. Their powers to set special rates for Sundays were removed in 1986.

Training Review

Mr. Booth : To ask the Secretary of State for Employment whether she has completed her review of her Department's employment and training measures for unemployed people ; and if she will make a statement.

Mrs. Gillian Shephard : I have concluded my review and am today announcing a new framework of employment and training measures to help unemployed people back to work. This will operate from April 1993 onwards.

As a result of these changes, there will be half a million more opportunities on our programmes in 1993-94 than we are providing this year. The extra opportunities will be concentrated on long-term unemployed people and those who face particular difficulties in the labour market, such as people with disabilities. These are the people who are most in need of special assistance to get back to work. TEC-delivered programmes

Training for Work, a new adult training and work programme, to be run by training and enterprise councils (TECs) in England and Wales and local enterprise companies (LECs) in Scotland, will replace employment training and employment action. TECs and LECs will have important new flexibilities to develop programmes of skills training, temporary work and job preparation to meet the needs of local unemployed people and local circumstances. TECs and LECs will be encouraged to use these flexibilities to make best use of their resources, for example by developing training credit schemes and expanding useful temporary work in our public services. I expect the new programme to provide 320,000 opportunities in 1993-94. In order to help improve performance, the funding regime will be developed to offer a progressively higher proportion of payment for results, including payments for participants gaining jobs or qualifications. This will strengthen the incentives for TECs to deliver programmes that best help individuals and meet labour market needs.

Today's announcement incorporates most of the recommendations made by the TEC adult training working group, including the merger of employment training and employment action and the development of a new payment system based on starts and outputs.

Employment Service Measures

There will be a further expansion of the successful job club and job interview guarantee programmes. We will also be developing work trials of up to three weeks with employers, which give unemployed people the opportunity to prove themselves in a job, without their benefits being affected. In all, these employment service measures are expected to provide an extra 180,000 opportunities in 1993-94. A major point of entry into other opportunities will be the new jobplan workshops to be run by the employment service. These will advise and assess the needs of people


Column 902

unemployed for a year or more, principally those who have not taken up other offers of help open to them. The successful experience of existing Restart courses and job review workshops will be drawn on, but the new workshops will offer more intensive support from workshop leaders, including one-to-one advice and guidance, new computer-aided guidance and an enhanced action plan. Those completing workshops will have priority access to other programmes. It is expected that around 300,000 people will pass through the programme in 1993-94. Employment service advisers will offer places in job plan workshops to all those out of work for a year who have not taken up an offer of help back to work. As is currently the case with Restart courses offered to people unemployed for two years those who do not take up places offered to them may lose their benefit for a period of time. The social security advisory committee will be consulted shortly about the benefit for non-attendance in these circumstances. Eligibility

All those unemployed for over six months, including lone parents, will be eligible for these programmes, with earlier access available to all of them for people with disabilities, ex-service personnel, ex-detainees, labour market returners, people who need help with literacy, numeracy or basic English and those unemployed as a result of major redundancies.

Unemployed people with disabilities and those leaving the new job plan workshops will have priority access to these programmes. These priorities will replace the current aim and guarantee which were designed to help certain groups of unemployed people in rather different labour market circumstances.

Other measures

All unemployed people will of course remain entitled to the full range of jobcentre services to help them back to work as soon as possible. There will also be an extra 10 thousand places in job review workshops for short- term unemployed people and more career development loans will be made available to enable more unemployed people to invest in their own training.

SOCIAL SECURITY

Social Fund

Mr. Dewar : To ask the Secretary of State for Social Security what was the social fund budget in total and for (a) crisis loans, (b) community care grants and (c) budgeting loans for each social security or Benefits Agency office in each year since 1988-89, in cash and real terms.

Mr. Scott : Expenditure on crisis and budgeting loans comes from a single loans budget. Information on expenditure on grants and loans for the years 1988-89 to 1991-92 has been placed in the Library. Real term figures have been calculated using the current GDP deflator and may alter.

Motability

Ms. Walley : To ask the Secretary of State for Social Security (1) if he will give details of the extent of the computer breakdown dealing with Motability claims ;


Column 903

(2) how many claimants from Stoke-on-Trent, North have had their Motability claims delayed ; how soon he expects to deal with this backlog ; what emergency arrangements have been made ; and if he will make a statement.

Mr. Scott : The administration of the scheme is a matter for Motability which is an independent organisation. Any questions on the issue should be directed to Mr. K. Keen, director of Motability.

Cash Limits

Mrs. Browning : To ask the Secretary of State for Social Security what proposals he has to change the cash limits or running costs limit of his Department for 1992-93.

Mr. Scott : Subject to parliamentary approval of the necessary supplementary estimate, the cash limit for class XIV, vote 3 (housing benefit administration, payments into the social fund in respect of discretionary expenditure and other grants) will be increased by £4, 250,000 from £365,972,000 to £370,222,000. The cash limit for class XIV, vote 4 (administration and miscellaneous services) will be increased by £1,922,000 from £2,270,076,000 to £2,271,998,000. The revision for vote 3 takes account of a grant to make repayable sums available to pension funds linked to the former companies of Robert Maxwell to assist in the payment of pensions (£2,500,000) and subsidies to housing and local authorities toward the costs of administering the housing benefit scheme and to charging and levying authorities towards the costs of administering the community charge benefit scheme (£1,750,000).

Vote 4 revisions take account of the additional administrative expenditure arising from higher unemployment (£9,472,000), of which £6,496,000 is running costs, an increase of £16,528,000 (of which £10,795,000 is running costs) in respect of end year flexibility arrangements, a transfer from Department of the Environment (property holdings and central support services) : civil accommodation and administration etc., class VIII, vote 7 of £2,015,000 (running costs) an increase of £60,000 towards the administration costs of the Maxwell Pensioners Trust, a transfer from Department of Health and Social Security (Northern Ireland) vote 3 of £437,000 (running costs) a transfer to Department of Employment : programmes and central services, class VI, vote 1 of £58,000 (running costs) and a reduction of £35,000 following the transfer of responsibility for the departmental records officer to the Department of Health. The additional requirements are partially offset by an increase in receipts of £26,497,000 and the balance (£1,922,000) totally represents transfers from other Departments.

In addition to the running costs changes included above there is also a reduction of £2,906,000 to take account of expenditure previously classified running costs now being reclassified as capital and other current.

As a result of these changes the running costs limit of the Department of Social Security will be increased by £16,779,000 from £2,521,125,000 to £2,537,904,000.

All these increases are within the forecast outturn for the planning total included in the Chancellor's autumn statement today.


Column 904

Income Support

Mr. Pickles : To ask the Secretary of State for Social Security what consultations he has had over the proposed income support regulations concerning unemployed people not actively seeking work ; and if he will make a statement.

Mr. Scott : Following consultation with the social security advisory committee, we have today laid regulations which will remove entitlement to income support from most unemployed single people and childless couples who fail actively to seek work. Accompanying the regulations, as Cd 2099, are the social security advisory committee's report and my response. Pregnant women, the disabled and people responsible for the care of a child or young person will remain eligible for a reduced rate of income support if they would otherwise suffer hardship.

Benefits Expenditure

Mr. Robert B. Jones : To ask the Secretary of State for Social Security if he will set out the latest plans for expenditure on the social security programme including details on the new rates of benefits proposed for April 1993.

Mr. Lilley : Economic recovery means keeping public expenditure under control, while preserving capital programmes. Spending on social security, therefore, which comprises one third of total Government spending, must play its part in this. In his autumn statement to the House today my right hon. Friend the Chancellor of the Exchequer reported that expenditure on social security would be £79.8 billion in 1993-94, £82.9 billion in 1994-95 and £87 billion in 1995-96. These plans reflect the Government's manifesto commitments on retirement pension and child benefit. I have also made it a high priority to protect less well-off people by increasing all major benefits in line with prices, but I have also rigorously scrutinised my programme for areas where value for money can be improved. Social security fraud

Efforts to tackle fraud and abuse of benefits will be stepped up. DSS fraud teams are already saving significant sums--nearly £500 million this year--and they will be improving their efficiency. Increasing use of computer technology will weed out false claims and ensure money goes only to bona fide recipients, who make up the vast majority.

These measures should save some £80 million extra from fraud in the first year, rising to £120 million by 1995-96. In addition, consultations will begin with the local authority associations about fresh incentives for local authorities to investigate fraud affecting housing benefit and the new council tax benefit.

From next April, I intend that local authorities will receive direct financial reward for their increased efforts to prevent payment of benefits to those not entitled to them. These incentives will benefit local finances, and also save the taxpayer as much as £180 million next year, on top of the fraud savings already made by local authorities. By taking these measures I hope the total of fraud identified and stopped will increase to nearly £1 billion each year.


Column 905

Operational resources

There will be continued investment in information technology and further improvements in the Department's offices around the country. The public will receive a standard of service which continues to reflect my Department's full commitment to the aims of the citizens charter. Capital spending will increase by some£159 million over the next three years, bringing capital spending to over £1 billion in that period.

My programme to ensure best use of operational resources includes action to extend and encourage the use of automated credit transfer for the payment of benefits. This will improve the method of payment on offer and also save resources. In addition, my Department will be working with the Post Office to improve efficiency and to reduce theft and fraud involving order books and giros.

Uprating

The uprating of social security benefits will take place for most benefits, as usual, in the first full week of the tax year--which in 1993 will be the week beginning 12 April. I have reviewed social security benefits in accordance with section 150 of the 1992 Administration Act and my proposals are set out below. The statutory instruments to implement them will be laid before both Houses for debate. My right hon. and learned Friend the Secretary of State for Northern Ireland proposes to introduce similar changes for Northern Ireland. All the proposed new benefit rates are in the schedule. The normal basis for uprating most benefits is the annual increase in the retail prices index up to September which this yeaer is 3.6 per cent.

Retirement pensions

Retirement pension, which is received by 10 million people, will rise next April in line with the RPI. The basic pension for a single person will be increased by £1.95 per week to £56.10 and for couples by £3.10 to £89.80. This uprating alone will cost the national insurance fund almost £1 billion next year. Public service pensions will be increased across the board by 3.6 per cent.

War pensions

War pensions will be uprated fully in line with prices. The special Ministry of Defence payments to pre-1973 war widows, which are the responsibility of my right hon. and learned Friend the Secretary of State for Defence, will rise in line with the RPI from £46.18 to £47.84 per week.

There are two other proposals affecting the war pensions scheme. I propose to introduce a threshold for claims for noise induced hearing loss, bringing the war pensions rules more into line with those for industrial injury awards. The effect will be that those with less than 20 per cent. disablement in respect of noise induced hearing loss will in future receive no award. We propose to use savings from that change to remove rank differentials in war disablement pensions.

As a result of these changes, almost 200,000 severely disabled ex-service men will gain up to an extra £5 per week. No existing war pensioner will suffer a reduction in the cash he or she is receiving.

The Central Advisory Committee on War Pensions will be consulted on the proposed changes.


Column 906

Other benefits

All national insurance benefits will be increased by 3.6 per cent. Unemployment benefit for a single person will therefore rise from £43.10 to £44.65 per week and the rate for couples will rise from £69.70 to £72.20.

All disability benefits will also be uprated in line with prices. For example the disability living allowance care component at the higher rate will go up in April from £43.35 to £44.90 per week. Child benefit will also be fully uprated in line with prices. The new rates of child benefit will be £10 for the first or eldest eligible child, and £8.10 for each subsequent child. One-parent benefit will also be increased to £6.05. The lower rate of statutory maternity pay will be increased from £46.30 to £47.95.

Sickness benefit and invalidity benefit will also be uprated by prices. For example, invalidity benefit for a single person will go up from £54.15 to £56.10 and for a couple from £86.70 to £89.80. I have been considering the operation of the statutory sick pay scheme--which now covers most short term sickness. The lower rate of statutory sick pay will rise in line with the RPI from £45.30 to £46.95. I judge however that an increase in the higher rate, which goes to employees earning more than £195 per week, would not be a sensible use of scarce resources, especially as most of these employees will already be working for employers who operate occupational sick pay schemes. I therefore propose to make no change in the higher rate of statutory sick pay next year.

Changes to invalidity benefit

There has been a significant increase in expenditure on invalidity benefit and in the numbers receiving it.

Since 1978-79, the caseload has more than doubled and the costs have risen by nearly 140 per cent. in real terms. By 1995-96, invalidity benefit will be costing well over£7 billion.

Against this background, in order to ensure that the benefit is focused on those for whom Parliament intended it, I plan to tighten up the administrative and medical control procedures from April 1993, operated by my Department. This will ensure that medical examinations are better targeted and that more effective action will be taken when people fail to attend for examination or are found capable of work. These changes are expected to reduce expenditure by £240 million over the survey period.

A major research study into IVB was launched in August 1991. Some results have been received and others will be received during 1993. I will consider these results carefully as they become available. Income-Related benefits

Income-related benefits are normally uprated by the retail prices index less certain housing costs--the so-called Rossi index. This year the September--September increase in the Rossi index was the same as for the RPI, that is 3.6 per cent.

Premiums for income-related benefits for elderly people have been uprated twice in the past year as part of our policy to target benefits on the most vulnerable groups in society. From next April all the relevant income- related benefit allowances and premiums (eg for income support, housing benefit, family credit and disability working allowance) will rise by 3.6 per cent. ; for council tax benefit the rates will be set at these new levels. This means for


Column 907

example that a pensioner couple aged 75 or more will receive an increase in income support from £94.60 per week to £98.00 and benefit for a single person over 25 will go up from £42.45 to £44.00 Earlier this year the Government introduced improvements to the arrangements in respect of non-dependant deductions which apply both to housing benefit and housing costs in income support. This year the three earnings thresholds which determine the appropriate level of deduction will increase by £5. However, the three lowest rates of deduction will not rise pro-rata but will remain at their present level, which will provide extra help to 295,000 households with lower paid non-dependants. The top rate deduction will increase by £3 a week from £18 to £21, which means a fairer contribution from those non- dependents with the most substantial income.

I have also taken the opportunity to raise the levels of the earnings thresholds for non-dependant deductions and second adult rebates in council tax benefit. This will bring further small gains to around 3,000 people liable to pay the council tax.

As foreshadowed in the social security benefits (uprating) statement made in October 1991, we will not reduce benefits to compensate for the removal of the minimum contribution to local taxes. This means a real increase in the disposable income of the least well off. For example, a single person aged 25 or over on income support will benefit by £1.60 per week, and a couple by £2.80 per week.

Social fund

Following my recent announcement of the allocation of an additional £8 million to the social fund discretionary budget in the current year, there will be a further substantial increase next year when I expect this budget to increase to around £340 million. This further large increase means that the budget will be 12 per cent. higher than at April 1992 and nearly 50 per cent. above its 1991 level. These increases have been made possible largely by the success of the loans system introduced in 1988 which enables more help to go to more people than would be possible if the same amount of taxpayers' money were only used for grants.

Residential care and nursing homes

From the 1 April next year, new residents requiring help with their care needs will be assessed by local authorities under the new community care arrangements. My right hon. Friend the Secretary of State for Health announced on 2 October the funding for the new arrangements including the transfer of funds from the Department of Social Security. The new limits I propose will therefore apply only to existing income support recipients in residential care and nursing homes, that is to say those with preserved rights to support under the present arrangements.

All the limits in residential care homes will be increased by £10 a week, including those for elderly people, mental illness, mental handicap and drug and alcohol abuse. This is well above the amount which a straight inflation increase would produce. I am also able to improve the relative amount given to the lowest limit--that for elderly people. I have done this in recognition of the increasing age and frailty at which people enter care.


Column 908

I also propose to increase almost all the limits for nursing homes by £10 a week. The only exception is the limit referred to as the terminal illness limit. I propose instead to steer additional help to hospices.

Last year, my predecessor announced that additional funds of £1 million a year would be transferred from the social security budget to the NHS for the direct funding of hospices for each of the three survey years. I am pleased to announce a further £1 million transfer in 1993-94.

The personal expenses allowance will be increased fully in line with inflation to £12.65. The total annual cost of the increases will be over £100 million. This significant increase reflects this Government's continuing commitment to elderly and disabled people in residential or nursing care.

Other proposals

There are also some proposals for changes which involve only relatively small amounts of money, but will be welcomed by those helped. These fall into three main categories : measures which help disabled people ; those for carers ; and measures which mainly affect orphans.

First, disabled people. In income support, housing benefit and community charge benefit the severe disability premium is at present only available where the recipient is a disabled person on disability living allowance (DLA) or attendance allowance (AA) who is living independently or with someone who is also getting DLA/AA. From next year, I intend to extend eligibility to those who cannot get it now because they live with a person, and that person is registered blind.

More resources will be given to Motability, the charity which arranges the provision of vehicles for disabled people. Their success has meant a 15 per cent. increase in business in the last year and this trend is projected to increase into the future. My Department will increase its core funding for Motability's administrative costs in line with this expansion--taking our total funding to £2.8 million in 1995-96. In addition I intend to increase on an ongoing basis the Mobility Equipment Fund which allows Motability to make charitable donations to customers who require very expensive vehicle adaptations which they cannot afford. From April I intend to double the amount of money available to £2 million and place the grant on a three year basis thereby replacing the existing arrangement where our funding is re-considered every year. This will assist their financial planning. I intend to give £45,000 per annum to the British Limbless Ex-Servicemen's Association to assist them with the provision of specialised car components, eg gearboxes, for arm amputee war pensioners.

For carers, I intend to introduce two measures next April. The first would increase from £40 to £50 the amount which recipients of invalid care allowance can earn before losing their benefit. This is further to last year's increase which raised the ceiling from £30 to £40. The second will introduce into income support, housing benefit and council tax benefit a carers' earnings disregard of £15. Those people who presently qualify for an earnings disregard of less than £15 and who are entitled to the carer premium will now be able to earn up to £15 a week without losing any of their income related benefit. Both of these measures will help many carers who wish to keep in touch with the world of work, as well as giving them valuable additional cash.


Next Section

  Home Page