HC Deb 14 June 1965 vol 714 cc26-7
30. Mr. Ridsdale

asked the Minister of Labour how many employees have wage agreements tied to the cost-of-living index; and what estimate he has made of the cost per week in increased wages to meet the recent two point increase in the cost of living.

Mr. Thornton

About 2 million employees have wages agreements which include cost-of-living sliding scale clauses. These agreements, however, vary a great deal. For example, some specify changes in wage-rates whenever the retail prices index moves at all. Others specify changes in rates only when the index moves a prescribed number of points. Still others specify changes relating to the movements in the prices index over a particular period in time, e.g. 3 months, 6 months or a year. It is therefore impossible to calculate the change in wages attributable to any particular movement in the index of retail prices.

Mr. Ridsdale

Does not this show a great fault in the collection of statistics by the Ministry of Labour? For instance, in which industries are these employees? Are these employees going to benefit by a 9 per cent. wage increase, or do they come within the 3½ per cent. norm set by the Secretary of State for Economic Affairs?

Mr. Thornton

As I said in my Answer, it is not possible to relate it to particular movements of the index of retail prices, but the information available, which I will give to the hon. Gentleman, is that we cannot relate the changes to a particular movement in the index. What we can do is to estimate the changes in wages which have been due to sliding-scale arrangements as a whole over a period in time. For example, during 1964, the basic weekly wage rate increased by about £5 million, of which changes in the cost-of-living sliding-scale arrangements amounted to approximately £⅓ million or about 7 per cent. During 1961, 1962 and 1963 the proportion of wage increases directly attributable to the cost-of-living sliding-scale adjustments varied between 5 per cent. and 9 per cent.

Mr. Ridsdale

In view of the unsatisfactory nature of that reply, I beg to give notice that I shall raise the matter on the Adjournment.