§ Earl Russellasked Her Majesty's Government:
Whether they have formed an estimate of the likely savings to housing benefit resulting from a minimum wage for young people of (a) £3.00; (b) £3.20 and (c) £3.60. [HL2494]
§ Baroness Hollis of HeighamThe information is set out in the table.
Savings on Housing Benefit resulting from a minimum wage Minimum wage for 18–21 year-olds Savings on Housing Benefit £3.00 £5 million £3.20 £10 million £3.60 £15 million Notes:
1. Estimates are based on the 1995–96 Family Resources Survey, uprated to 1998–99 levels of expenditure and caseloads, but with the October 1999–2000 tax and benefit structure imposed.
2. Savings are rounded to the nearest £5 million.
3. Estimates are based on the first-round effects of the minimum wage: no other factors are taken into account.