§ Lord Vinsonasked Her Majesty's Government:
Whether the Low Pay Unit takes into account the permanent benefit in kind given to workers by way of rent, council-tax, free accommodation and free meals when assessing their true level of remuneration. [HL98]
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)At present only accommodation, up to the value of the offset, can count towards minimum wage pay. The daily accommodation offset is calculated at a rate of £3.75 (£26.25 a weeek) for each day that the employer makes the accommodation available.
The first report of the Low Pay Commission looked in detail at the question of benefits in kind but concluded that only accommmodation should be able to count towards minimum wage pay. The commission is presently working on its next report on the minimum 34WA wage, which should be submitted to the Government in February 2005. Its terms of reference allows it to address any matter connected with the minimum wage.