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WQ.45/2021
WRITTEN QUESTION TO THE MINISTER FOR SOCIAL SECURITY
BY SENATOR S.Y. MÉZEC
QUESTION SUBMITTED ON MONDAY 15th FEBRUARY 2021 ANSWER TO BE TABLED ON MONDAY 22nd FEBRUARY 2021
Question
Will the Minister advise, on the basis of Jersey's minimum wage increasing to the level of the Island's living wage (i.e. £10.96 per hour) –
- how many workers would receive a pay rise;
- how many workers who are claiming Income Support would be raised above the threshold to claim such support; and
- what amount, if any, would be saved from the Income Support budget?
Answer
- Information on hourly wage rates is only available through survey data. The most recent information available was collected in June 2019. At that time the minimum wage was £7.88. The survey results indicate that 5% of private sector jobs were paid at the minimum wage rate and 11% were paid between £7.88 and £8.25. Similar percentages were identified from the previous survey in 2016. It is not possible to estimate the total number of private sector workers who would receive a pay rise if the minimum wage increased from £8.32 to £10.96. All public sector workers have been covered by the voluntary living wage commitment since 2018.
- And (c) An increase of 32% in the minimum wage from 8.32 to £10.96 would have significant impacts across many areas of the labour market and a full economic analysis would be required to provide advice on the possible consequences e.g. potential job losses/sectors. The Chief Minister published a detailed report from Oxera in 2017 (R.83/2017) which examined the possible impact of an increase in minimum wage from £7.18 to £7.88 (a 10% increase) and from £7.18 to £8.40 ( a 17% increase). Furthermore, due to the pandemic, the current economic position and outlook is very different now compared to 2017. As such, it is not possible in this written question to provide advice on the number of workers who are claiming Income Support who would be raised above the threshold to claim such support nor the amount, if any, that would be saved from the Income Support budget, as a consequence of increasing the minimum wage from £8.32 to £10.96.