HC Deb 06 December 1979 vol 975 cc297-8W
Mr. Ralph Howell

asked the Secretary of State for Employment if he will update the replies given to the hon. Member for Norfolk, North dated 26 October, 30 November and 17 December 1977, showing the net cost of employing all the registered unemployed at weekly wages of £45, £50 and £55 (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 or £55 per week would cost approximately as follows for one year:

All ages 18 and over
£million £million
£45 2,370 1,942
£50 2,565 2,102
£55 2,750 2,252

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

(b) It is not possible to estimate with any confidence the savings on unemploy- ment benefits, resulting from the proposal. However, the average benefit payment (excluding earnings related supplement) to the unemployed amounted to £22 per week in June 1979. If average benefits saved were £22 per week per person, the annual costs would be reduced as follows:

All Ages 18 and over
£ £
1,592 million 1,296 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.

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