Written question asked by Lord Redwood (Conservative) on Monday, 22 June 1998, in the House of Commons. It was due for an answer on Tuesday, 21 July 1998. It was answered by Baroness Beckett (Labour) on Tuesday, 21 July 1998 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the President of the Board of Trade, what change there would be under her minimum wage proposals in the take-home pay of an employee currently on £3 an hour, working a 40 hour week and in receipt of housing benefit and working families' tax credit, where the employee is the sole earner in a four person family. - (Holding answer 25 July 1998).

Answer: Mr. Redwood: To ask the President of the Board of Trade what change there would be under her minimum wage proposals in the take-home pay of an employee currently on £3 an hour, working a 40 hour week and in receipt of housing benefit and working families tax credit, where the employee is the sole earner in a four person family. [47544] Mrs. Beckett: [holding answer 25 June 1998]: The Working Families Tax Credit and the reforms to National Insurance Contributions announced in the Budget will substantially reduce the numbers of families facing very high marginal deduction rates--meaning families will keep more of any increase in their earnings. These reforms, together with the national minimum wage, will boost the returns from work for low paid workers and help to `make work pay'. It is not possible to estimate the change in net income in this instance, since that will depend on a number of factors, including: the age of the employee (and therefore the appropriate minimum wage rate applying); the rent they pay; whether they are in receipt of council tax benefit; the age of their children.

Secondary information

Type: Written question
Reference: 316 c515W; 47544
Session: 1997-98
Subjects: Minimum wage National insurance contributions Working families tax credit Take-home pay