HL Deb 04 March 1982 vol 427 c1448WA
Lord Kilmarnock

asked Her Majesty's Government:

  1. (a) whether they accept that £5,000 a year is a reasonably accurate estimate of the cost to the Government of each additional person becoming unemployed;
  2. (b) whether they are in possession of official estimates, as yet unpublished, confirming this.

The Minister of State, Treasury (Lord Cockfield)

In 1981–82 the cost to the Government in unemployment and supplementary benefit and in associated administrative costs was £1,600 per additional person becoming unemployed.

There are, of course, other losses associated with reduced output and a lower level of employment but it is possible to produce a wide range of estimates of what these losses are, depending on the assumptions made and the concepts followed.