§ Sir Teddy TaylorTo ask the Secretary of State for Education and Employment when the low pay scheme was introduced in Southend-on-Sea; how many grants have been awarded; what is the total Government expenditure involved; and if he will provide details of the range of payments made under the scheme. [13509]
559W
§ Mr. Roger EvansEarnings top-up was introduced on October 8 1996 in eight pilot areas, including Southend. The three-year pilot has started successfully with more than 7,000 people receiving earnings top-up1—more than 350 of them in the Southend area. The pilot is expected to cost a total of £65 million over three years.
Two benefit rates—scheme A and scheme B—are being piloted to test how different amounts of earnings top-up influence the decision to take up and remain in work. Southend is a scheme A pilot area.
Information on the maximum possible awards in each scheme is set out in the table. The minimum award possible is 50 pence in all cases.
Maximum earnings top-up awards Single person under 25 Single person 25 and over Couple £ £ £ Scheme A Working 16–29 hours per week 22.75 28.00 46.45 Working 30+ hours a week 33.05 38.30 56.75 Scheme B Working 16–29 hours a week 22.75 28.00 56.05 Working 30+ hours a week 33.05 38.30 66.35 1. As at 31 January 1997. 2. Payments at the maxima quoted were in payment at 31 January 1997.