HC Deb 07 July 1987 vol 119 c126W
Mrs. Beckett

asked the Secretary of State for Social Services how the increase in average earnings is calculated for the purpose of revaluing earnings factors; and whether there have been any changes in the method of calculation or the earnings index used.

Mr. Scott

The increase in average earnings for the purpose of the annual Revaluation of Earnings Factors Order is based on the change in whole-economy average earn not seasonally adjusted, measured between December and December of each year. Minor technical changes were made in 1984 in the index used, as a result of revision of earnings indices by the Department of Employment. In 1983 the method of applying the revaluation percentage to earlier years was adjusted to prevent the risk of cumulative rounding errors as the series of revaluations lengthens.