Low Incomes (Hansard, 13 July 1992)

§ Ms. Corston
To ask the Secretary of State for Social Security whether the recommendations made in the publications of the University of Bristol's statistical monitoring unit in 1991 and 1992 about the measurement of low incomes have been followed by his Department in preparing the report on households below average income in 1989.

§ Mr. Burt
The methodology of the forthcoming report on households below average income—HBAI—in 1989 is based on the recommendations of a technicl stocktaking exercise in 1991. During this exercise external analysts were consulted, including Professor Peter Townsend of the university of Bristol. A member of the Bristol statistical monitoring unit also attended a follow-up seminar in February 1992, along with independent analysts from established and authoritative institutions. The use in HBAI of equivalence scales, allied to sensitivity testing, was supported by all independent analysts from other institutions. This methodology has accordingly been adopted in the forthcoming edition of HBAI.
Although the university of Bristol statistical monitoring unit's views on some key issues are not shared by the majority of independent or Government expert opinion, the Department has of course given them due weight, as it does all advice on methodological issues.

§ Ms. Corston
To ask the Secretary of State for Social Security when he plans to make available and publish the results of the households below average income analysis for 1991.

§ Mr. Burt
The households below average income analysis based on 1990–91 data should be available in mid-1993.

§ Ms. Corston
To ask the Secretary of State for Social Security if he will list the other countries which have adopted his Deparrtment's equivalence scale in measuring low incomes.

§ Mr. Burt
Equivalence scales can be expected to vary from country to country. However, I understand that equivalence scales, with relative rates for singles and couples similar to those employed by the households below average income analysis—HBAI—have been employed in studies in Finland, Sweden, Ireland and France. The approach incorporated in the 1992 edition of HBAI is to produce results on a central set of equivalence scales and subject these to extensive sensitivity testing. This approach was recommended in the report of last year's HBAI stocktaking review, a copy of which is available in the Library. It has been endorsed by almost all the external analysts consulted.