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Unemployment Costs

Volume 205: debated on Wednesday 4 March 1992

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To ask the Secretary of State for Employment what is his latest estimate of the overall cost to the Exchequer of unemployment (a) in 1991 and (b) in 1992.

Figures for calendar years are not available. Gross benefit payments to the unemployed in financial year 1990–91 were £5·04 billion. The cost of administering unemployment benefit was calculated at £182 million for the same period. Administration costs for other benefits paid to the unemployed cannot be separately identified and we do not calculate estimates of foregone tax revenues. The latest estimate of benefit payments to the unemployed for the financial year 1991–92 is £7·36 billion.Departmental plans for 1992–93 currently allow for expenditure in the region of £7·9 billion.