Every unemployed person costs taxpayers pounds 10,000 a year in benefit
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
Every unemployed person costs taxpayers pounds 10,000 a year in benefit payments and lost tax revenues, according to a study published today by three Cambridge economists. Calculations based on a detailed assessment of the likely changes in taxes and benefits following the creation of 1 million public-sector jobs suggest that they would offset more than half the cost to the Exchequer.
The research, by Michael Kitson, Jonathan Michie and Holly Sutherland, will provide useful ammunition to those who would like to see a Labour government take an active approach to cutting unemployment. But direct job creation by government differs in spirit from proposals by the shadow Chancellor, Gordon Brown, to reduce tax on the low paid in order to improve incentives to work.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments