HC Deb 23 July 1998 vol 316 cc655-6W
Mr. Cox

To ask the Chancellor of the Exchequer what is the estimated number of(a) men and (b) women working in the Greater London area who will benefit from the proposed national minimum wage. [51649]

Mrs. Liddell

The information requested falls within the responsibility of the Chief Executive of the Office for National Statistics. I have asked him to reply.

Letter from Tim Holt to Mr. Tom Cox, dated 23 July 1998: As Director of the Office for National Statistics (ONS), I have been asked to reply to your parliamentary question on the proposed national minimum wage. The proposed national minimum wage (NMW) which is due to come into effect in April 1999 has been set at £3.60 per hour for workers aged over 21. A development rate of £3.00 per hour has been proposed for those aged 18 to 21. Workers aged 16 to 17 and all those on apprenticeships will be exempt. Estimates of the number of employees below the NMW thresholds have been based upon the results of the Spring 1997 Labour Force Survey (LFS) and the April 1997 New Earnings Survey which are currently the latest available sources, and have used the methodology described in David Wilkinson's article in the May 1998 issue of Labour Market Trends. Copies of Labour Market Trends are available in the House of Commons Library. The estimated numbers of men and women in the Greater London area who earn less than the proposed NMW are set out in the following table. To reflect the uncertainty, the estimates are expressed in the form of a range, based on the sampling errors associated with the surveys from which the estimates have ben derived. In order to ensure comparability with the proposed NMW rates which would come into force in April 1999 the analysis in the table is based upon hourly rates of £2.80 and £3.40 which use the Low Pay Commission's methodology to take into account inflation between April 1997 and April 1999.

Estimates of number of employees aged 18 to 21 earning below £2.80 and employees aged over 21 earning below £3.40 in Greater London in April 1997
Lower estimate Upper estimate
Males 51,000 85,000
Females 57,000 74,000

The above estimates do not take into account workers aged over 21 who whilst receiving accredited training during the first six months of a new job with a new employer would under NMW proposals be entitled to a rate of £3.20 per hour in April 1999.