§ Lord Kilmarnockasked Her Majesty's Government:
- (a) whether they accept that £5,000 a year is a reasonably accurate estimate of the cost to the Government of each additional person becoming unemployed;
- (b) whether they are in possession of official estimates, as yet unpublished, confirming this.
§ The Minister of State, Treasury (Lord Cockfield)In 1981–82 the cost to the Government in unemployment and supplementary benefit and in associated administrative costs was £1,600 per additional person becoming unemployed.
There are, of course, other losses associated with reduced output and a lower level of employment but it is possible to produce a wide range of estimates of what these losses are, depending on the assumptions made and the concepts followed.