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Minimum Wage

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WQ.75/2022

WRITTEN QUESTION TO THE MINISTER FOR SOCIAL SECURITY BY DEPUTY G.P. SOUTHERN OF ST. HELIER

QUESTION SUBMITTED ON MONDAY 21st FEBRUARY 2022 ANSWER TO BE TABLED ON MONDAY 28th FEBRUARY 2022

Question

"Will the Minister provide figures to demonstrate how the both the minimum wage and the components of Income Support have performed over the past decade compared with R.P.I. (Retail Price s Index) and A.E.I. (Average Earnings Increases)?"

Answer

Income support rates, minimum wage rates, retail price index and average earning index values are all publicly available.

Note that the Income Support scheme is based on a combination of eligibility criteria, components and disregards, ensuring that each household claim takes full account of the size and nature of the household and its income and other assets. In addition to component changes there have been a range of other changes to the Income Support scheme over the last decade.

The table below shows annual RPI and AEI indices for the last 10 years. June figures are used for consistency. In addition, the minimum wage at the beginning of each year is shown from 2012 to 2021. A list of all component rates at the start of each year is also shown together with the earnings disregard in force at the beginning of each year.

Component rates are shown as £ per week, with the exception of childcare rates which are £ per hour. There are a range of minimum wage rates – only the main rate is included in the table.

Housing rental caps private are maximum values paid. Note that since April 2014 these caps have not applied to social rental tenants and social sector rental components are now uncapped.

The statistics show that the minimum wage rate has increased twice as fast as average wages over the last decade. In 2012 the minimum wage rate was £6.32 per hour. Today it stands at £9.22 an hour, an increase of 46% over 10 years, compared to a 24% rise in average earnings and a 21% rise in RPI.

There have been many changes to the income support scheme over the period covered. The disregard applied to earned income has increased from 16.5% to 26% over the last 10 years.

In terms of income support components, the increase in support for families with the component allocated to the first child in an income support family has risen from £63.98 in 2012 to £83.02 today. This is an increase of 30% over the last 10 years.

 

Category

Component (as at 1/1)

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

RPI (June)

 

153.3

155.6

158.1

159.6

162.0

166.1

173.5

178.4

179.3

185.5

 

AEI (June)

 

271.4

277.4

284.5

289.7

295.8

303.4

314.0

322.3

325.8

336.5

 

Minimum wage (as at 1/1) (£ per hour)

 

6.32

6.48

6.53

6.63

6.78

6.97

7.18

7.50

8.02

8.32

9.22

Earned income

 

16.5%

16.5%

16.5%

20%

23%

23%

25%

25%

26%

26%

26%

 

Category

Component (as at 1/1)

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

disregard (as at 1/1)

 

 

 

 

 

 

 

 

 

 

 

 

Basic Rates

Adult

92.12

92.12

92.12

92.12

92.12

92.12

94.85

97.72

99.61

99.61

100.73

Basic Rates

Single Parent

132.51

132.51

132.51

132.51

122.43

112.35

105.00

138.11

140.00

140.00

141.12

Basic Rates

First Child

63.98

63.98

63.98

63.98

63.98

63.98

65.87

72.94

77.98

77.98

83.02

Basic Rates

Subsequent Child

67.90

69.23

69.23

70.00

Basic Rates

Household

49.56

51.31

51.31

51.31

51.31

51.31

52.85

54.46

55.51

55.51

56.14

Carer Rate

Carer

46.97

46.97

46.97

46.97

46.97

46.97

48.37

49.84

50.82

50.82

51.38

Housing Rental Caps

Hostel

76.30

78.96

80.64

80.64

95.13

100.10

103.04

106.19

108.22

108.22

109.48

Housing Rental Caps

Lodgings

109.41

113.26

115.71

125.30

125.30

131.88

135.73

139.86

142.52

142.52

144.13

Housing Rental Caps

Rented Bedsit

109.41

113.26

115.71

125.30

125.30

131.88

135.73

139.86

142.52

142.52

144.13

Housing Rental Caps

Rented 1 Bed Flat

156.31

161.77

165.27

181.30

181.30

194.46

200.13

206.15

210.07

210.07

212.45

Housing Rental Caps

Rented 2 Bed Flat

196.63

203.49

207.90

235.48

235.48

248.99

256.27

263.97

269.01

269.01

272.02

Housing Rental Caps

Rented 3 Bed Flat

223.37

231.21

236.18

242.20

242.20

267.26

275.03

283.29

288.68

288.68

291.90

Housing Rental Caps

Rented 1 Bed House

177.59

183.82

187.74

208.88

208.88

222.88

229.39

236.32

240.87

240.87

245.53

Housing Rental Caps

Rented 2 Bed House

231.28

239.40

244.58

273.56

273.56

283.01

291.27

300.02

305.76

305.76

309.19

Housing Rental Caps

Rented 3 Bed House

258.02

267.05

272.79

324.24

324.24

330.54

340.13

350.35

357.07

357.07

361.06

Housing Rental Caps

Rented 4 Bed House

279.16

288.96

295.19

341.25

341.25

360.29

370.79

381.92

389.20

389.20

393.54

Housing Rental Caps

Rented 5 Bed House

303.73

314.37

321.16

387.87

387.87

398.86

410.48

422.80

430.85

430.85

435.61

Housing Owner Occupied Rates

Owner Occupied Bedsit

5.67

5.88

6.02

6.02

6.02

6.37

6.58

6.79

6.93

6.93

7.07

Housing Owner Occupied Rates

Owner Occupied 1 Bed Flat

5.67

5.88

6.02

6.02

6.02

6.37

6.58

6.79

6.93

6.93

7.07

Housing Owner Occupied Rates

Owner Occupied 2 Bed Flat

5.67

5.88

6.02

6.02

6.02

6.37

6.58

6.79

6.93

6.93

7.07

Housing Owner Occupied Rates

Owner Occupied 3 Bed Flat

8.05

8.33

8.54

8.54

8.54

9.03

9.31

9.59

9.80

9.80

9.94

Housing Owner Occupied Rates

Owner Occupied 4 Bed Flat

11.41

11.83

12.11

12.11

12.11

12.74

13.16

13.58

13.86

13.86

14.07

Housing Owner Occupied Rates

Owner Occupied 1 Bed House

5.67

5.88

6.02

6.02

6.02

6.37

6.58

6.79

6.93

6.93

7.07

Housing Owner Occupied Rates

Owner Occupied 2 Bed House

8.05

8.33

8.54

8.54

8.54

9.03

9.31

9.59

9.80

9.80

9.94

Housing Owner Occupied Rates

Owner Occupied 3 Bed House

11.41

11.83

12.11

12.11

12.11

12.74

13.16

13.58

13.86

13.86

14.07

Impairment Rates

Personal Care Level 1

22.96

22.96

22.96

22.96

22.96

22.96

23.66

24.43

24.92

24.92

25.20

Impairment Rates

Personal Care Level 2

101.15

101.15

101.15

101.15

101.15

101.15

104.09

107.24

109.34

109.34

110.60

 

Category

Component (as at 1/1)

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Impairment Rates

Personal Care Level 3

145.25

145.25

145.25

145.25

145.25

145.25

149.52

154.07

157.01

157.01

158.76

Impairment Rates

Mobility Level 1

22.96

22.26

22.96

22.96

22.96

22.96

23.66

24.43

24.92

24.92

25.20

Impairment Rates

Mobility Level 2

45.92

45.92

45.92

45.92

45.92

45.92

47.32

48.79

49.77

49.77

50.33

Impairment Rates

Clinical Costs Level 1

3.01

3.15

3.15

3.15

3.15

3.15

3.29

3.43

3.50

3.50

3.57

Impairment Rates

Clinical Costs Level 2

6.02

6.30

6.30

6.30

6.30

6.30

6.58

6.86

7.00

7.00

7.14

Childcare Hourly rate

Child Day Care Age 0 - 2

6.12

6.27

6.27

6.27

6.48

6.59

6.79

7.00

7.14

7.14

8.00

Childcare Hourly rate

Child Day Care Age 3 - 4

4.78

4.90

4.90

4.90

5.06

5.15

5.30

5.46

5.57

5.57

6.70

Childcare Hourly rate

Child Day Care Age 5 - 11

4.73

4.85

4.85

4.85

5.06

5.15

5.30

5.46

5.57

5.57

6.70