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Unemployment Benefit

Volume 201: debated on Friday 20 December 1991

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To ask the Secretary of State for Social Security what earnings rule currently applies to unemployment benefit; and whether he plans any changes.

Unemployment benefit is not payable for any day on which earnings exceed £2, or for any week in which earnings exceed the lower earnings limit for national insurance contributions (currently £52 a week).The daily earnings rule does not apply to payments made to individuals for certain special purposes notably allowances paid to members of the Territorial Army, coastguards, lifeboatmen and part-time firemen. We intend shortly to consult the Social Security Advisory Committee on extending exemption to local authority councillors in respect of their basic and special responsibility allowances.