§ Ms Janet AndersonTo ask the Secretary of State for the Environment (1) what proposals he has to take into account local wage rates in respect of area costs adjustment allocation; [38480]
(2) what research his Department has commissioned into the operation of the area costs adjustment; [38478]
(3) what representations he has received in respect of the area costs adjustment; [38481]
(4) what plans he has to review the criteria for the area costs adjustment. [38479]
§ Sir Paul BeresfordMy right hon. Friend set up an independent review of the area cost adjustment, chaired by Professor Elliott of the university of Aberdeen. The review reported earlier this month. The findings of the review had the benefit of substantial research306W commissioned to the specifications of the review team, together with research submitted in representations from local authority associations and groupings.
The review recommends that the area cost adjustment should be based on the results of an analysis of the reasons for the variations in earnings reported by the labour force survey. The analysis distinguishes the extent to which variations are accounted for by geographical location, as distinct from other factors.
I have received a number of representations about the results of the review, both asking that its findings be implemented, and asking that they be rejected.