HC Deb 04 November 1976 vol 918 cc665-7W
Mr. Nicholas Winterton

asked the Secretary of State for Employment (1) what non-wage benefits are not to be set off against the limits imposed by "The Attack on Inflation: the Second Year";

(2) if fringe benefits such as luncheon vouchers and clothing allowances etc. should be offset against the supplement paid under "The Attack on Inflation: the Second Year".

Mr. Harold Walker

Improvements to enhance job security—for example, new or improved redundancy payment schemes, guaranteed week provisions and sick pay schemes—are allowable outside the pay limit. All other improvements should be contained within the limit with the exception that existing allowances for the reimbursement of expenses necessarily incurred in the course of employment may be increased in line with the actual increase in costs involved.

Mr. Nicholas Winterton

asked the Secretary of State for Employment if reductions in the working week, where negotiated, reduce the supplement paid under "The Attack on Inflation: the Second Year".

Mr. Harold Walker

All reductions in standard hours count against the pay limit.

Mr. Nicholas Winterton

asked the Secretary of State for Employment how many cases have been raised under the Fair Wages Resolution (1946) during the last year; how many of these cases have resulted in the successful increasing of basic rates in excess of the supplements payable under "The Attack on Inflation: the Second Year".

Mr. Harold Walker

In the 12-month period up to 31st October 1976, 77 cases have been formally raised with the Department of Employment under the 1946 Fair Wages Resolution. Seven cases so far have resulted in an award by the Central Arbitration Committee, of which one award gave an increase in basic rates relating to the period covered by "The Attack on Inflation: the Second Year".

Mr. Nicholas Winterton

asked the Secretary of State for Employment if payments under the various London allowance agreements made prior to 11th July 1975 should be offset against the supplements paid under "The Attack on Inflation: the Second Year."

Mr. Harold Walker

Payments under London weighting agreements made prior to 11th July 1975, and increases in London weighting effective from due dates prior to 1st August 1975 in line with the Department of Employment indices of additional costs, are not subject to the pay limits. Increases in London weighting in line with the Department of Employment indices which become due on or after 1st August 1975 must be contained within and offset against the appropriate pay limit.

Mr. Nicholas Winterton

asked the Secretary of State for Employment if improvements to existing payment by results schemes or new payment by result schemes or productivity schemes will be offset against "The Attack on Inflation: the Second Year" should they cause increases in incomes in excess of the suggested supplements.

Mr. Harold Walker

Payments under improvements to existing schemes and under new schemes have to be kept within the pay limit.

Mr. Nicholas Winterton

asked the Secretary of State for Employment if the cost of any new or improved occupational pension schemes will be offset against the limits imposed by "The Attack on Inflation: the Second Year".

Mr. Harold Walker

New and improved schemes designed to meet no more than the minimum requirements for contracting out under the Social Security Pensions Act 1975 may be implemented outside the pay limit from any date from 1st August 1976 but only in respect of service after that date. Schemes which were under active consideration during the three months prior to 1st July 1975 with the intention of implementing them not later than 31st July 1976 may be implemented outside the pay limit, where they have been subject to unforeseen delay beyond that date. Improvements beyond this level must be offset against the pay limit.

Mr. Nicholas Winterton

asked the Secretary of State for Employment if increments and wage-for-age payments will be offset against the limits imposed by "The Attack on Inflation: the Second Year".

Mr. Harold Walker

Increments and wage-for-age payments which are made according to a well-defined range or scale already in operation before 11th July 1975 may continue at the same level as in preceding years, provided that the cost together with that of other increases counting against the pay limit does not raise the pay bill for the group concerned by more than would be allowed by the pay limit alone. An increment or part of an increment which has been withheld solely because of the £8,500 cutoff in the first year of the policy may be paid with effect from a date 12 months after the date on which it would otherwise have been allowable; alternatively, an increment allowable on the later date may be paid—but not both.