§ Mr. HopkinsTo ask the Chancellor of the Exchequer what assessment he has made of the financial impact, in terms of in-work benefits and tax credits, of the minimum wage being set at £5.00 an hour in October 2001. [144113]
§ Dawn PrimaroloI refer my hon. Friend to my answer to my hon. Friend the Member for Monmouth (Mr. Edwards) on 28 November 2000,Official Report, columns 589–90W.
461W
§ Mr. HopkinsTo ask the Chancellor of the Exchequer (1) if he will estimate the number of people in April 1999 entitled to higher pay as a result of the national minimum wage, using the revised ONS methodology; [144111]
(2) if he will estimate how many people would have been earning below £3.60 an hour in April in the absence of the national minimum wage; [144112]
(3) if he will estimate how many 18 to 21-years-olds (a) earned between £3.00 and £3.60 an hour in April 1999 and (b) earned between £3.20 and £3.70 an hour in October. [144114]
§ Miss Melanie JohnsonThe information requested falls within the responsibility of the National Statistician. I have asked him to reply.
Letter from John Kidgell to Mr. Kelvin Hopkins, dated 8 January 2001:
The National Statistician has been asked to reply to your recent Parliamentary Questions about the national minimum wage (NMW) and people aged 18 to 21 earning between specific hourly rates of pay (144111, 144114, 144112). I am replying in his absence.The Office for National Statistics (ONS) has estimates of the number of jobs being paid below NMW rates (£3.00 per hour aged 18–21 and £3.60 per hour aged 22 or over) for Spring (March-May) 1998, 1999 and 2000. These are based on an improved methodology which uses data from both the New Earnings Survey (NES) and the Labour Force Survey (LFS).Using this methodology, ONS estimate that there were 1.5 million jobs in the UK paid at less than NMW rates in spring 1998.This estimate does not measure the number of jobs entitled to higher pay as a result of the NMW since it makes no allowance for wage inflation. For example, some people's hourly earnings might have increased to above the NMW rates between Spring 1998 and Spring 1999 without the implementation of the NMW. In addition, it is not possible from either the LFS or the NES to identify whether an individual is eligible for NMW rates. For example, it is not possible to identify people such as apprentices, those undergoing accredited training or those with accommodation supplied who are exempt from the NMW or are entitled to lower rates.Information on the number of 18 to 21 year olds earning between specific pay bands using the revised methodology is not currently available. However, this information for Spring 1998, Spring 1999 and Spring 2000 will be posted on the National Statistics website from 11 January 2001.No information is available on the number of people who would earn less than £3.60 an hour in the absence of the NMW.