§ Pete WishartTo ask the Secretary of State for Work and Pensions (1) if he will estimate the impact on the level of benefit payments of setting the minimum wage for young people at(a) £4.17 per hour and (b) £4.87 per hour; [90640]
(2) if he will estimate the impact on each benefit payable to those in paid employment of a national minimum wage of (a) £4.17 and (b) £4.87 for the next financial year; [90641]
(3) what estimate he has made of benefit savings which would result from an increase in the national minimum wage from (a) £4.20 to £4.87 and (b) £3.60 to £4.17 in (i) Scotland, (ii) England, (iii) Wales, and (iv) Northern Ireland; [90651]
(4) if he will estimate the impact on benefit payments in the next financial year of a single minimum wage for all age groups of (a) £4.17 per hour, (b) £4.20 per hour, (c) £4.87, (d) £5 per hour and (e) £5.30 per hour. [90652]
§ Malcolm WicksThe information requested is in the table:
1005W
£ Change to minimum wage Estimated reduction in benefit payments for 2003–041,2,3 Set at £4.17 per hour for young people 3,700,000 Set at £4.87 per hour for young people 20,000,000 Set at £4.17 per hour for all age groups 3,700,000 Set at £4.87 per hour for all age groups 68,800,000 Increase from £4.20 to £4.87 for adults (aged 22+) and £3.60 to £4.17 for young people(aged 19-21)4,5 In Scotland 11,400,000 In England 78,000,000 In Wales 4,300,000
£ Change to minimum wage Estimated reduction in benefit payments for 2003–041,2,3 Set at £4.20 per hour for all age groups 3,900,000 Set at £5.00 per hour for all age groups 82,000,000 Set at £5.30 per hour for all age groups 117,600,000 1 The benefits included in the savings estimates are Pensioners Credit, Income Support, Jobseekers Allowance, Housing Benefit and Council Tax Rebate. Tax Credits administered by Inland Revenue have not been included. 2 The model does not estimate changes in employment and therefore the results do not account for any changes that may occur in the supply and demand of labour as a result of changing the national minimum wage. 3 Estimates cannot be broken down by benefit due to small sample sizes. Estimates are rounded to the nearest £100,000. 4 The results show the impact of raising the adult minimum wage and the young persons minimum wage simultaneously. 5 Social Security matters for Northern Ireland are dealt with by the Northern Ireland Office. Source:
Figures are estimated using the DWP's Policy Simulation Model for 2003–04 based on the Family Resources Survey 2000–01