HC Deb 02 August 1978 vol 955 cc428-9W
Mr. Watkinson

asked the Secretary of State for Social Services what is the latest estimate of the cost in unemployment benefits, lost tax and non-payment of national insurance if 1 million persons are out of work.

Mr. Orme

If the average number registered as unemployed (other than school leavers, adult students and the temporarily stopped) in 1978–79 were 1 million and had been at that level for some years, the cost in unemployment benefits, including supplementary allowances, would be about £1,100 million and the loss of National Insurance contributions (including the higher employers' surcharge from October 1978) about £600 million.

No realistic estimate can be made of the tax lost as this would depend upon the duration of employment while in work of the persons who make up the average of 1 million unemployed during the year, and the tax allowances appropriate to their circumstances.

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