Area Cost Adjustment

HC Deb 13 January 2003 vol 397 c381W

Mr. Luff

To ask the Deputy Prime Minister why Worcestershire local authorities are not eligible for area cost adjustment. [90387]

Mr. Leslie

The area cost adjustment is based on evidence about average wages in each area of the country, adjusted so that like for like comparisons are made. Areas with a relative wage above a particular threshold are those that receive the area cost adjustment. Wages in the Herefordshire and Worcestershire area are below this threshold. A full methodology guide to the area cost adjustment is available on the Office of the Deputy Prime Minister's website, and a copy has been placed in the Library of the House.