§ 21. Mr. PoundTo ask the Secretary of State for Trade and Industry what assessment he has made of the impact of the national minimum wage since its introduction. [82381]
§ Mr. Ian McCartneyIt is early days; the national minimum wage has been in operation for only 5 weeks. However, recent independent research shows not only that most employers (almost 90 per cent.) support the principle of the minimum wage but that 40 per cent. had adjusted their pay structures prior to its introduction. There is no evidence of higher costs feeding into higher prices and there were few signs of any demand for the restoration of pay differentials. There was little evidence of significant job losses; in fact, staff levels among smaller firms have increased by 11 per cent. over the past year —staff turnover had fallen in traditionally low paying industries.
§ Mr. LoveTo ask the Secretary of State for Trade and Industry what assessment he has made of the effect of the national minimum wage since its introduction. [82361]
§ Mr. Ian McCartneyThe national minimum wage, since its introduction in April, has benefited some two million of the lowest paid workers in the country, and their families. The principle of a minimum wage is supported by the vast majority of companies in this country.
The Inland Revenue are enforcing the national minimum wage, and they supply my Department with data on all matters relating to compliance on a regular basis. Early indications are that awareness of the law is high, and so is compliance. Only in relatively few cases have we had reports of deliberate underpayment. These are being actively pursued.
§ Mr. RammellTo ask the Secretary of State for Trade and Industry if he will make a statement on the impact of the national minimum wage. [82384]
§ Mr. Ian McCartneyThe Government asked the Low Pay Commission to monitor and evaluate the introduction and impact of the national minimum wage with particular reference to the effects on pay, employment and competitiveness. The Commission has been asked to report its findings by December.
§ Mr. SheermanTo ask the Secretary of State for Trade and Industry what estimate he has made of the number of people who have benefited from the introduction of the national minimum wage. [82357]
§ Mr. Ian McCartneyThe Government estimate that nearly 2 million workers have benefited from the introduction of the national minimum wage. Recent research commissioned by Reed Personnel Services shows that almost 9 out of 10 companies surveyed support the minimum wage in principle and that 4 out of 10 had already adjusted their pay scales ahead of the introduction of the minimum wage on 1 April.
439WAdjusted data from official statistics, available in October, will give some indication of the extent of the shift in workers' earnings resulting from the national minimum wage.
§ Fiona MactaggartTo ask the Secretary of State for Trade and Industry what representations he has received on the implementation of the national minimum wage. [82372]
§ Mr. Ian McCartneyThe Department has received a number of representations about the implementation of the national minimum wage legislation. In addition, the Inland Revenue, which is enforcing the minimum wage, has received some 500 reports of underpayment of the minimum wage and is approaching employers to resolve the complaints.