§ Mr. Haselhurstasked the Chancellor of the Exchequer, further to his reply to the hon. Member for Saffron Walden on 26 February, Official Report, c. 420, at what level of earnings it would be possible to employ unemployed persons without any additional net cost to the Exchequer.
§ Mr. BrittanBroadly speaking, the Government would incur net costs if they offered wages which, net of tax and employees' national insurance contributions, were higher than benefit levels. Estimates of average benefits received in 1980–81 given in February's "Economic Progress Report" article suggest that any net wage above £1,200—equivalent to a gross wage of £1,300—would therefore incur net costs. If administrative, supervisory, and material costs were taken into account, this figure would be reduced even further.