§ Mr. Cyril Smithasked the Chancellor of the Exchequer what estimate he has made of the additional cost to the Exchequer and to local government, in wages and salaries per annum, of a statutory minimum wage of £116 per week; and if he will make a statement.
§ Mr. Brooke[pursuant to his reply, 2 March 1987, c. 520]: The additional cost for central and local government pay bills of introducing a statutory minimum wage of £116 per week for full-time adults would be about £1 billion in the current financial year. It is not possible to supply separate estimates for central and local government. This estimate has been calculated assuming that higher paid workers would not try to restore previous differentials and that there would be no job losses. If differentials were restored, either partially or fully, the potential cost would be much greater. The introduction of such a minimum wage would inevitably lead to substantial job losses and for that reason, amongst others, the Government remain opposed to it.