asked the Minister for Labour the total allocation for 1984 under the employment incentive scheme; if he intends to improve or expand this scheme in any way to improve the employment position; and if he will make a statement on the matter.
Written Answers. - Employment Incentive Scheme.
582.
The allocation for the Employment Incentive Scheme in 1984 is £3 million. An evaluation of the operation of the scheme was carried out recently. As a result I introduced a number of changes expanding and improving the effectiveness of the scheme with effect from 30 April 1984. In brief the principal changes are:
—the scope of the scheme has been expanded to include all sectors (except the public sector and financial activities) as against agriculture and manufacturing industry before 30 April 1984;
—non-commercial as well as commercial activities are now included;
—the restriction on newly established businesses has been removed;
—the £25 premium has been increased to £30 and the £45 premium payable in respect of the long-term unemployed has been increased to £60;
—the qualifying period of unemployment is now 13 weeks for the £30 premium and 52 weeks for the £60 premium;
—in order to encourage permanent employment, premiums will not be paid in respect of employment which does not last for 24 weeks;
—the local offices of the National Manpower Service are now more closely involved in the operation of the scheme and are responsible for approving applications by employers to participate;
—an employer may receive premiums in respect of not more than two jobs in the period 30 April 1984 to 31 December 1984. This restriction is intended to increase the cost effectiveness of the scheme by directing it towards smaller operations. The evaluation study to which I have referred showed that the incentive offered by the scheme was most effective in encouraging additional recruitment in small firms.
The operation of the scheme has been amended to provide for the making of a single payment to an employer at the end of 24 weeks employment of an eligible worker. As a result only a small proportion of the premiums in respect of recruitments in the second half of 1984 will fall to be paid this year.