HC Deb 16 December 1977 vol 941 cc449-50W
Mr. Ralph Howell

asked the Secretary of State for Employment if further to his reply to the hon. Member for Norfolk. North Official Report, 30th November, c. 196, he will now estimate the overall net cost of guaranteeing to every unemployed adult a job at (a) £45 per week and (b) £50 per week, after taking into account the increased revenues from national insurance contributions and from income tax, and compare these figures with the total current expenditure on unemployment benefit and all other grants and subsidies designed to relieve unemployment.

Mr. Harold Walker

It is estimated that to pay every adult person at present unemployed a wage of (a) £45 a week and (b) £50 a week, after taking into account increased revenue from national insurance contributions and from income tax, would cost about £2,100 million and £2,250 million a year respectively. There would also be additional costs, for example, for administration, materials, which would depend upon the types of projects involved.

The estimated expenditure on unemployment and supplementary benefit and the special measures in the financial year 1977–78 will be about £1,822 million.

I should like to take this opportunity to correct the reply given to the hon. Member to his previous Question—[Official Report, 30th November, Vol. 940, c. 196.]. The estimates should have been £1,900 million and not £1,700 million.