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Unemployed Persons (Cost)

Volume 35: debated on Thursday 27 January 1983

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asked the Chancellor of the Exchequer what is the current cost to the Exchequer in terms of public spending and lost tax revenue of an unemployed worker.

Additional expenditure associated with unemployment depends on the characteristics of those becoming unemployed. A broad average figure for additional expenditure on unemployment benefit, supplementary benefit, housing benefit and administration would be of the order of £1,850 a year per additional person, though individual experience would vary.Changes in tax revenue would depend on the cause of the unemployment and there is a wide range of possible effects. No single figure can be given.