HC Deb 16 February 1999 vol 325 cc672-3W
Mr. Kemp

To ask the Secretary of State for Social Security what savings he estimates will be achieved in the social security budget for 1999–2000 as a result of the introduction of the national minimum wage within (a)the northern region and (b) the city of Sunderland. [70369]

Mr. Darling

The information is not available in the form requested. Such information as is available is in the table.

Estimates of the effect on DSS benefit expenditure of the introduction of the national minimum wage
£ million (1999/2000)
Benefit Savings
Income Support 10
Jobseeker's Allowance (income-based) 10
Housing Benefit 110
Family Credit/Working Families Tax Credit 185
Council Tax Benefit 25
Total 340

Notes:

1. Savings figures are calculated by raising the earnings of current benefit recipients to the level of the National Minimum Wage. No other factors are taken into account.

2. Estimates are based on the 1995–96 Family Resources Survey, imposing the 1999–2000 tax and benefit structure, assuming 1998–99 levels of caseloads, prices, benefit rates and earnings. Estimates are rounded to the nearest £5 million.