§ Mr. Kirkwoodasked the Chancellor of the Exchequer if he will set out in tabular form his best estimate of the average monthly cost to the Exchequer when an adult male worker on average weekly earnings, on the basis of all industries and services covered by the "New Earnings Survey", updated by the average earnings index and assuming pay was not affected by absence, becomes unemployed, showing separately (a) for single men and (b) for a married man with two children, one aged under five and the other aged between five and 10, the following disbursements (i) unemployment benefit, (ii) supplementary benefit, (iii) income tax rebate, (iv) housing benefit and the following losses of revenue, (v) from income tax, (vi) from taxes on consumption of goods and services (vii) from employer's national insurance contributions and from employee's national insurance contributions.
§ Mr. Peter Rees[pursuant to his reply, 14 November 1984, c. 265]: Further assumptions are required in order to calculate the benefit entitlements of the individuals described. For the table it has been assumed that the men are entitled to full unemployment benefit, that the married man's wife does not work, that the man is a householder, that he is a council tenant in a property appropriate to his family size and that his housing benefit is calculated on the basis of estimated average rent and rates in the 1984–85 financial year. The figures assume equal length months of one twelfth of a year and are based on benefit rates applicable from 26 November 1984.
Unemployment Benefit £
Supplementary Allowance £
Housing Benefits £
Single man 123.28 13.65 70.20 Married man with 2 children, one under 5 and one between 5 and 10 199.33 30.98 92.95 Changes in taxation for an individual depend further upon assumptions about when he becomes unemployed, the duration of his unemployment and his spending and saving behaviour when employed and unemployed. Any figures calculated in this way do not represent a net loss of revenue for the Exchequer as revenue flows may also change elsewhere in the economy, depending on assumptions about conditions elsewhere in the economy, were the level of unemployment different.