Unemployment

HC Deb 06 May 1993 vol 224 c183W

12. Mr. McFall

To ask the Chancellor or the Exchequer what his latest estimate is of the cost to the Exchequer of each unemployed person per year.

Sir John Cope

The Department of Social Security's annual report provides an estimate that, in the current year, a change in unemployment of 100,000 would result in a variation of £350 million in benefit expenditure—or an average of £3,500 per unemployed person.

22. Ms Short

To ask the Chancellor of the Exchequer what is the cost to the Treasury in benefits paid and tax and national insurance payments forgone of the current level of unemployment.

Mr. Portillo

The Department of Social Security estimates that in 1993–94 the total cost of benefits paid to unemployed people will be £9.29 billion based on an unemployment assumption for Great Britain of 2¾ million. An estimate of tax and national insurance payments forgone is not produced, as it depends on the particular tax liabilities and earnings when in employment of each individual who is currently unemployed.