§ 5. Sir J. Langford-Holtasked the Secretary of State for Employment when the weekly wage of £80 was fixed as the maximum to be taken into account for assessing redundancy payments; and what that figure would now represent if calculated at current prices.
§ The Under-Secretary of State for Employment (Mr. John Golding)The limit of £80 was fixed by Order made on 31st July 1974 and became effective for dismissals occurring on or after 28th August 1974. It is estimated that approximately £112 would have been required in April 1976 to purchase goods valued at £80 in August 1974.
§ Sir J. Langford-HoltAs presumably at the time that this level was fixed it was deemed to be fair and therefore, by implication, it is not fair today, why has no review taken place? When will a review take place?
§ Mr. GoldingA review will take place during 1977 under the Employment Protection Act. The original figure was such as to include all but the top 3 per cent. of those receiving pay, excluding overtime. The present £80 does that except for the top 10 per cent. We believe that the time is not yet ripe for a review.