§ Mr. Canavanasked the Secretary of State for Employment what is the net cost to public funds of maintaining a young person on a youth opportunities programme compared with the net cost to public funds of maintaining that same person if unemployed, taking into account administration costs, benefits paid out and loss of revenue by way of income tax, national insurance contributions and the cost of "second round" benefits such as indirect tax receipts.
§ Mr. AlisonThe net cost of a young person on the youth opportunities programme is not comparable with the cost of maintaining that same person if unemployed, because a trainee on the programme is not the equivalent of a young person in regular employment, and trainees pay no National Insurance contributions or taxes.
The net cost to public funds per entrant to the youth opportunities programme in the financial year 1980–1 has been estimated by the Manpower Services Commission at £515. This takes account of the savings in social security and unemployment benefits which would have been paid to participants taken off the unemployment register by the programme; the returns to the Exchequer of taxes and national insurance contributions paid by the adult staff on the programme; and the increased indirect taxes resulting from the higher expeniture of participants and from the non-wage expenditure on the programme.