HC Deb 21 July 1980 vol 989 cc10-2W
Mr. Ralph Howell

asked the Secretary of State for Employment if he will update the reply given to the hon. Member for Norfolk, North, Official Report, 6 December 1979, column 297, showing the net cost of employing all the registered unemployed at weekly wages of £45, £50, £55 and £60 (a) after taking into account increased revenue from income tax and national insurance contributions, and (b) after also deducting the estimated savings on social security benefits and tax refunds.

Mr. Jim Lester

(a) After taking into account increased revenue from income tax and national insurance contributions, it is estimated that to pay every adult person at present unemployed in Great Britain a wage of £45, £50, £55, or £60 per week would cost approximately as follows for one year:

All Ages
£
£45 2,532 million
£50 2,730 million
£55 2,928 million
£60 3,126 million
18 and over
£
£45 2,355 million
£50 2,539 million
£55 2,724 million
£60 2,907 million

There would be additional costs for administration, materials, etc., which would depend upon the types of projects involved.

(b) It is not possible to estimate with any confidence the savings on unemployment benefits, resulting from the proposal. On the assumption that the average benefits saved were £23–60 per week per person, the annual costs would be reduced as follows:

£
All Ages 1,869 million
18 and over 1,736 million

It is not possible to estimate the savings on tax refunds, the size of which would be determined by the point in the tax year at which employment commenced and the history of previous employment and tax payments of each person employed.

Mr. Ralph Howell

asked the Secretary of State for Employment if he will publish in the Official Report (a) the departmental report on unemployment figures and (b) the departmental report examining the possibility of unemployed persons doing voluntary work.

Mr. Jim Lester

My Department's review of unemployment and vacancy statistics was published in the May issue ofEmployment Gazette. Copies are available in the House of Commons Library.

My right hon. Friend has asked the Department to consider the feasibility of encouraging unemployed people to undertake some form of voluntary work, but it is too early to say whether this will lead to a published report.

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