§ Mr. William PowellTo ask the Chancellor of the Exchequer what calculations he has made on the implications for public expenditure if a national minimum wage of(a) £3 per hour, (b) £3.50 per hour and, (c) £4 per hour, (d) £4.50 per hour and (e) £5 per hour were to be introduced on 1 September and for the fiscal year 1996–97; and if he will make a statement. [32872]
§ Mr. WaldegraveA national minimum wage would destroy private sector jobs, leading to an increase in public expenditure on social security benefits for the unemployed. In the public sector, aggregate control of running costs in the civil service and our wider approach to pay means that higher spending on pay would have to be offset by spending cuts elsewhere.