§ Mr. RedwoodTo ask the President of the Board of Trade what estimate she has made of the total costs of implementing the minimum wage in the public sector, assuming(a) half restoration of differentials, (b) three-quarters restoration of differentials and (c) full restoration of differentials. [47543]
§ Mrs. Beckett[holding answer 25 June 1998]: The national minimum wage is likely to have only a small effect on public sector pay. Therefore, it is unrealistic to assume that there would be any significant demand to restore pay differentials. As the Low Pay Commission made clear,
at the rate we recommend, restoration of differentials should be limited".We also agree with the Commission's statement that
the overall effect on public finances is likely to be broadly neutral".
§ Mr. RedwoodTo ask the President of the Board of Trade what forecasts of potential job losses were available to her when deciding on a –3 an hour minimum wage for young persons. [47527]
294W
§ Mrs. Beckett[holding answer 25 June 1998]: The Government believe that their proposals for a sensibly set national minimum wage will not have an adverse effect on jobs. The Government, in their evidence to the Low Pay Commission, carefully considered the available evidence and noted that, where international studies have found adverse effects on employment, it has tended to be for younger workers. Hence, the Government propose that a lower rate should be set for young people. This proposal is consistent with our objective to give young people the skills and opportunities they need to progress.