§ Lord Underhillasked Her Majesty's Government:
Whether, in view of the Written Answer given on 12th November 1980 that the financial cost to the Government of an unemployed family man with two children is on average £500 per month, or £6,000 a year, consideration has been given to the economic effect of devoting £3 billion (the financial cost of 500,000 unemployed) to constructive work, such as essential railway development or housing, which would necessitate the supply of materials by the private sector, and if such a review has been undertaken whether the relevant document will be published.
§ Lord CockfieldAs was explained at the time, the figures quoted in the Written Answer to which the noble Lord refers are not typical of the unemployed and no such inference of the kind stated by the noble Lord can be drawn from them.
An increase in public expenditure of the kind proposed by the noble Lord would increase inflation, increase interest rates and ultimately lead to a higher, not lower, rate of unemployment. The Government regard the proposition as so unrealistic that they see no point in conducting a review of the kind suggested by the noble Lord.