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Unemployment Costs

Volume 109: debated on Tuesday 3 February 1987

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer what is the latest estimate of the anual net cost to the Exchequer of an unemployed person.

The latest estimate of the cost of unemployment and supplementary benefit paid to the

£ million
gross contributions less receipts other than refundsrefunds-abatements1unpaid refund abatement outstanding2
1980804799
19811,0901,0118
19821,624807
19831,454589
19841,18460561
19852,03531,262439
1986n/a41,1255
1This column shows refunds and abatements against the year to which they relate, not the year in which they are paid. Figures for 1984 onwards are abatements.
2Refunds and abatements should be paid a year in arrears. Figures in this column are the amounts outstanding at the end of the year in which they should have been paid.
3This figure may need to be revised in due course.
4This is the 1,633 mecu abatement in the 1987 draft budget. It will need to be revised upwards in due course.
5At 31 December 1986 there was no unpaid refund or abatement outstanding, but any correction to the abatement in respect of 1985 would still enter the accounts.

unemployed in 1986–87 is £6·16 billion, or about £2,150 per head. In addition, it is estimated that £1·26 billion will be paid in housing benefit, a benefit which can continue to be paid if the recipient finds employment. It Is not possible to estimate the revenue forgone.