§ Mr. McNamaraTo ask the Secretary of State for Trade and Industry how many young people in Hull, North have benefited from the introduction of the minimum wage for 16 and 17 year olds. [174795]
§ Mr. SutcliffeIt is not possible to provide an estimate specifically for the constituency of Hull, North because of small sample size. However, the number of people in the UK who stand to benefit from the new rate for 16 and 17 year olds is likely to be in the low tens of thousands.
§ Malcolm BruceTo ask the Secretary of State for Trade and Industry (1) how many people have legitimately not been paid the minimum wage in each year since its introduction; what the reason was in each case; what estimate she has made of the number of people not being paid the minimum wage for illegitimate reasons; and she will make a statement; [170311]
(2) how many employees have been affected by employers not complying with the National Minimum Wage in each year since its introduction. [170464]
§ Mr. Sutcliffe[holding answers 4 May 2004]: The Office for National Statistics publishes an estimate of the number of jobs paying below the National Minimum Wage—See table 1, which reproduces this estimate for the years since the National Minimum Wage was introduced).
Table 1: Number and proportion of jobs paying below the National Minimum Wage As at spring each year Number Percentage 20001 240,000 1.0 20012 250,000 1.0 20023 330,000 1.3 20034 260,000 1.0 1Rate was £3.00 per hour (aged 18–21) or £3.60 per hour (aged 22 and over). 2Rate was £3.20 per hour (aged 18–21) or £3.70 per hour (aged 22 and over). 3Rate was £3.50 per hour (aged 18–21) or £4.10 per hour (aged 22 and over). 4Rate was £3.60 per hour (aged 18–21) or £4.20 per hour (aged 22 and over). Source: Office for National Statistics' central estimates of low pay. However, these figures do not constitute an estimate of non-compliance since there are certain circumstances where the usual minimum wage rates do not apply, in which case it may be legitimate for an employer to pay below National Minimum Wage rates.
1445WThere are two main instances when individuals may legitimately earn less than the appropriate minimum wage for their age. Firstly, individuals may be on certain Government training programmes or apprenticeships, in which they are exempt for the first year up to the age of 26. Also, employees aged over 21 who receive accredited training (such as those doing NVQs) may be exempted from receiving the full adult national minimum wage for the first six months of training in a new job with a new employer. Secondly, employees may be exempted if they are receiving accommodation that is tied to their employment. Such employees do not have to be paid all of their minimum wage entitlement in cash terms because employers can legitimately reduce rates to take into account the cost of accommodation provided; from October 2003 this has amounted to a daily offset of £3.50, leading to a maximum weekly offset of £24.50.
Using the Labour Force Survey, the DTI estimates the maximum number of workers whose job characteristics mean they can be paid less than the National Minimum Wage.
Table 2: Maximum number of workers whose job characteristics mean they can legitimately be paid less than the National Minimum Wage As at spring each year Number 2000 320,000 2001 250,000 2002 260,000 2003 220,000 Source: Labour Force Survey. In practice, the number of workers who can legitimately be paid below minimum wage rates is likely to be substantially lower than these figures. This is because a significant proportion of people receiving free accommodation as part of the job, holding apprenticeships or taking part in Government training programmes are likely to be earning in excess of the minimum wage.