§ Mr. Ralph Howellasked the Secretary of State for Employment what would be 165W the cost of introducing a national minimum wage at (a) £1.25 per hour, (b) £1.40 per hour and (c) £1.50 per hour; how much would be the cost to the public sector; and what percentage increases in the total wages bill and in public sector wages bill these increases would represent.
§ Mr. Jim LesterThe following table gives estimates, based on the new earnings
£1.30 £1.40 £1.50 Approximate cost £700m. £1,150m. £1,800m. Percentage increases in wages bill 0.7% 1.2% 1.8% Separate estimates for the public sector can only be made for men aged over 21 and women aged over 18. The direct costs of a national minimum wage for
£1.30 £1.40 £1.50 Approximate cost £110m. £210m. £350m. Percentage increase in public sector wages bill 0.4% 0.7% 1.2% These estimates make no provision for the direct costs of raising the pay of part-time workers not for the indirect or repercussive effects of a minimum wage which would be considerable.