§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer, pursuant to his letter of 25 May concerning the effect of the minimum wage on household incomes of different income deciles, what estimate he has made of the gross gain for each decile of households; and if he will make a statement. [128037]
§ Dawn PrimaroloThe National Minimum Wage has, for the first time, provided a statutory level beneath which pay cannot fall—removing the worst excesses of low pay in the workplace.
590WIt should be viewed as part of a comprehensive and coherent strategy to tackle poverty and encourage work—a strategy that combines targeted in-work tax credits with a minimum wage that is set at a prudent level.
The estimates of the gross increase in earnings for households in each income decile are provided in the table.
Average gross increase in earnings for households affected by NMW Decile Percentage of households gaining from NMW Distribution of affected households Absolute (£ per week) Percentage Bottom 5.5 11.4 31.16 39.9 2nd 6.7 14.0 22.19 20.6 3rd 6.2 12.8 30.33 21.5 4th 6.8 14.1 23.40 10.0 5th 6.1 12.7 23.70 7.6 6th 5.4 11.2 23.94 6.0 7th 4.0 8.4 28.72 5.1 8th 3.5 7.3 32.32 5.0 9th 2.5 5.2 30.52 4.3 Top 1.4 3.0 32.75 4.0 Total 4.8 100.0 26.86 8.5