HC Deb 11 February 1999 vol 325 cc382-3W
Ms Buck

To ask the Secretary of State for Social Security what estimate he has made of the effect of the introduction of the minimum wage on the average gross weekly earnings of disability working allowance claimants. [69751]

Mr. Bayley

The average gross weekly earnings of Disability Working Allowance recipients will increase from £99 to £106.60 in 1999–2000 prices.

Notes:

  1. 1. Around 1.25 per cent. of DWA recipients will float off the benefit on payment of the minimum wage, and have been excluded in deriving the second figure.
  2. 2. Unsuccessful claimants will remain as such on payment of a minimum wage.
  3. 3. Analysis allows that partner's earnings may also increase on payment of minimum wage.
  4. 4. Analysis based on 100 per cent. count of DWA recipients.

Source:

Disability Working Allowance Statistics Quarterly Inquiry, July 1998.

Ms Buck

To ask the Secretary of State for Social Security what estimate he has made of the effect of the introduction of the minimum wage on the average gross weekly earnings of the main earners in families in receipt of family credit. [69749]

Angela Eagle

Average gross weekly earnings of main earners in families in receipt of Family Credit are estimated to increase from £121 to £129 at 1999–2000 prices.

Notes:

Around 3 per cent. of Family Credit (FC) recipients are estimated to float off benefit after the introduction of the minimum wage. These have been excluded in deriving the second figure.

Status of disability working allowance (DWA) recipients after payment of minimum wage for 1999–2000
Earnings
Group All Under £40 £40 to £79.99 £80 to £119.99 £120 to £159.99
All 19,300 530 6,070 5,130 4,370
Earnings above Minimum Wage 10,840 500 2,190 2,990 2,350
Gain from Minimum Wage, Same DWA 2,170 10 2,130 20 *
Gain from Minimum Wage, Less DWA 6,050 30 1,720 2,070 1,940
Gain from Minimum Wage, Float off DWA 240 * 30 50 70

Earnings
Group £160 to £199.99 £200 to £249.99 £250 to £299.99 £300 and over
All 1,900 890 300 90
Earnings above Minimum Wage 1,660 80 260 90
Gain from Minimum Wage, Same DWA * * * *
Gain from Minimum Wage, less DWA 200 60 20 *
Gain from Minimum Wage, Float off DWA 40 30 10 *

Notes:

  1. 1. Figures may not add up due to rounding, and will not be accurate to nearest 10
  2. 2. "*" represents a figure less than 5
  3. 3. No benefit unit with a Disability Working Allowance (DWA) recipient will be worse off after the introduction of the minimum wage and those with higher earnings will have higher total income
  4. 4. This is the first time the aggregate population figure has been used in the public domain, and is consistent with the Pre-Budget Report
  5. 5. Unsuccessful claimants will remain as such on payment of minimum wage
  6. 6. Analysis allows that partner's earnings may also increase on payment of minimum wage
  7. 7. Some self-employed DWA recipients report no earnings, and it is assumed this practice will be unaffected by the introduction of the minimum wage
  8. 8. Analysis based on a 100 per cent. count of DWA recipients

Source:

Disability Working Allowance Statistics Quarterly Inquiry, July 1998

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