§ Mr. SwayneTo ask the Secretary of State for Trade and Industry what factors the Low Pay Commission takes into account when setting the accommodation offset for the national minimum wage; and if he will make a statement. [114789]
§ Mr. Alan JohnsonBefore making their recommendation on the level of the accommodation offset for the introduction of the national minimum wage, the Low Pay Commission undertook an extensive and wide ranging consultation exercise, which included written and oral evidence from organisations and individuals in various sectors that provide accommodation for workers. They also examined current charges in the agricultural and hotel industries and took account of the rates set in the former Wages Councils. In view of the representations received during the consultation exercise on the draft National Minimum Wage Regulations, the Government asked the Commission to look again at this issue in February 1999. The Commission also considered the offset for their second report, which monitored the impact of the minimum wage since its introduction in April.
The Government believe that workers should be paid a reasonable wage and not have to rely on benefits in kind. The accommodation offset figure is not intended to be a commercial valuation but is designed to protect workers from unreasonable accommodation charges, while recognising that these arrangements are of benefit to worker and employer.
The Commission has recommended that the offset should be retained at its present level and considered again when the national minimum wage is next reviewed. The Government accepted this recommendation.
§ Mr. SwayneTo ask the Secretary of State for Trade and Industry how the accommodation offset for the national minimum wage has been calculated; and if he will make a statement. [114790]
§ Mr. Alan JohnsonThe maximum amount which can be offset against national minimum wage pay by employers who provide accommodation is £19.95 a week. This is to be calculated at either £2.85 per day or 50p an hour, up to the maximum. The two different methods of calculation ensure that part-time workers do not lose out.
The maximum amount reflects the recommendation of the Low Pay Commission in their first report in June 1998. The amount is not meant to reflect the commercial value of the accommodation provided. The accommodation offset was considered further in the Commission's special report on the offset produced in March 1999, which 364W concluded that it was set at the right level. The most recent Commission report, published in February 2000, recommended that
the accommodation deductor should be retained at its present rate and its level considered again when the national minimum wage is reviewed.The Government accepted this recommendation.