§ Mr. Peter AinsworthTo ask the Secretary of State for Culture, Media and Sport what representations he has received from the British Activity Holiday Association regarding the impact of the level of accommodation offset within the National Minimum Wage Regulations. [114972]
§ Mr. Chris SmithWe received a copy of the British Activity Holiday Association (BAHA) comments in late 1998 on the accommodation offset during consultation on the then draft National Minimum Wage Regulations. These comments were also copied to the Department of Trade and Industry.
Number of staff and their category Reason for terminations Period of notice Total cost 11 aged 60+ who are being compulsorily retired Museum reorganisation 6 to 9 months 48,529 9 aged between 50 and 60 who are taking early retirement but on a compulsory basis Museum reorganisation 6 months 1190,470 22 persons under 50 who are taking compulsory early severance Museum reorganisation 6 months 1,035,510 3 others Performance or health grounds 2—no notice Nil 1—13 weeks 1 Additionally these staff will be paid an annual compensation cost until they reach age 60. The total cost in the current year is £89,838. Over the next few years this annual sum will reduce as people reach age 60. The overall present value of this payment, at current money values, is estimated to be £555,343. There will also be other one-off costs estimated at £253,989 relating to pension preservation and the bringing forward of lump sums. Notes:
1. All the compensating amounts shown above derive from Civil Service Pension Scheme standard terms and conditions.
2. The above table does not include staff whose fixed-term contracts have not been renewed. These terminations do not carry a cost to the Museum.
276WMore recently, I am aware that the BAHA gave written and oral evidence to the Low Pay Commission on the offset as part of the review which the Government asked the Commission to carry out to evaluate the introduction of the minimum wage.