To ask the Secretary of State for Social Security what was the expenditure on earnings-related unemployment benefit each year since 1975, at current and at 1990 prices; and what is the estimated saving in public expenditure from the abolition of earnings-related unemployment benefit each year since 1982 and cumulatively, at current and at 1990 prices.
Expenditure on earnings-related unemployment benefit from 1975 to 1982 is shown in the table.
| £ million | ||
| Original price | 1990–91 price | |
| 1975–76 | 73 | 247 |
| 1976–77 | 87 | 254 |
| 1977–78 | 92 | 248 |
| 1978–79 | 90 | 214 |
| 1979–80 | 85 | 171 |
Original price
| 1990–91 price
| |
| 1980–81 | 170 | 306 |
| 1981–82 | 176 | 292 |
Information on the expenditure saving from the abolition of earnings-related unemployment benefit each year since 1982 is not available. In 1982 it was estimated that the public expenditure saving in the first full year from the abolition of earnings-related unemployment benefit was around £100 million at 1982–83 prices; this converts to about £150 million at 1990–91 prices. Following recent research into the work history of the newly unemployed, it is now estimated that if earnings-related unemployment benefit were to be reintroduced the gross cost would be around £200 million in the current financial year. There would be an offsetting saving of about £50 million on income support.