HC Deb 27 January 2000 vol 343 cc257-8W
Mr. Swinney

To ask the Secretary of State for Social Security if he will estimate the impact on the level of benefit payments of setting the minimum wage for young people at £3.60 per hour. [106670]

Mr. Bayley

It is estimated that expenditure on departmental benefits will decrease by £15 million if the minimum wage for young people is increased from £3.00 per hour currently to £3.60 per hour. This assumes there are no secondary effects on employment or wages.

Notes:

1. Estimates based on 1996–97 Family Resources Survey data, uprated to 2000–01 prices and benefit rates.

2. Estimates rounded to the nearest £5 million. This covers Income Support, Housing Benefit and Council Tax Benefit only.

Mr. Swinney

To ask the Secretary of State for Social Security if he will estimate the impact on the level of benefit payments of maintaining the minimum wage at its present level. [106669]

Mr. Bayley

It is estimated that the cost to the Social Security budget of maintaining the minimum wage at its present level is £10 million at 2000–01 prices.

Notes:

1. Estimates based on 1996–97 Family Resources Survey data, uprated to 2000–01 prices and benefit rates.

2. Estimates rounded to the nearest £5 million.

Dr. Cable

To ask the Secretary of State for Social Security if he will estimate the impact on each benefit payable to those in paid employment of a national minimum wage of(a) £3.80 and (b) £4.00 for the next financial year. [107144]

Mr. Bayley

The information is in the table.

Estimated savings in 2000–01 on benefits payable to those in paid employment of a national minimum wage of (A) £3.80 and (B) £4.00
£ million
£3.80 £4.00
Income Support/JSA(IB) -15 -30
Housing Benefit -25 -50
Council Tax Benefit -5 -10
Total -50 -90

Notes:

1. Estimates based on 1996–97 Family Resources Survey data, uprated to 2000–01 prices and benefit rates.

2. Estimates rounded to the nearest £5 million. Totals may not add up owing to rounding.

3. Estimates assume no secondary effects on employment or wages.