HC Deb 15 May 2000 vol 350 cc37-8W
Mr. Matthew Taylor

To ask the Secretary of State for Social Security what estimate he has made of the number of people who no longer receive (a) one and (b) more than one means-tested benefit due to the introduction of the minimum wage; and if he will make a statement. [121743]

Angela Eagle

It is estimated that there are 50,000 people who no longer receive one of Income Support, Housing Benefit or Council Tax Benefit as a result of the introduction of the minimum wage and there are 10,000 people who no longer receive more than one of these benefits.

Notes:
  1. 1. Estimates based on 1997–98 Family Resources Survey Data, uprated to 2000–01 prices and benefit rates. Minimum wage and benefit receipt have been modelled with the Policy Simulation Model.
  2. 2. Estimates rounded to the nearest 10,000.
  3. 3. Estimates are based on minimum wage rates when it was introduced (£3.60 for those aged over 21 and £3.00 for those aged 18–21).
  4. 4. Estimates assume no secondary effects on employment or wages.
Mr. Matthew Taylor

To ask the Secretary of State for Social Security what estimate he has made of the proportion of recipients of(a) Council Tax Benefit, (b) Housing Benefit and (c) other means-tested benefits who are paid within (i) 5 per cent. and (ii) 10 per cent. of the minimum wage; and if he will make a statement. [121746]

Angela Eagle

Actual data on hourly earnings of those in receipt of means-tested benefits from administrative sources are not available. However, it is estimated that 6 per cent. of Housing Benefit recipients, 3 per cent. of Council Tax Benefit recipients and 3 per cent. of Income Support recipients are paid within 5 per cent. of the minimum wage. It is also estimated that 7 per cent. of Housing Benefit recipients, 3 per cent. of Council Tax recipients and 3 per cent. of Income Support recipients earn within 10 per cent. of the minimum wage.

Notes:
  1. 1. Estimates based on 1997–98 Family Resources Survey data, uprated to 2000–01 prices and benefit rates. Minimum wage and benefit receipt has been modelled within the Policy Simulation Model.
  2. 2. Estimates give individuals earning between the minimum wage and 5 or 10 per cent. above the minimum wage who are in a benefit unit receiving the means-tested benefit as a proportion of all adults in benefit units in receipt of the benefit. No account has been taken of overlapping receipt of means tested benefits.
  3. 3. Estimates are based on minimum wage rates when it was introduced (£3.60 for those aged over 21 and £3.00 for those aged 18–21).
  4. 4. Estimates assume no secondary effects on employment or wages.
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