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Families (Taxation)

Mr. Pickles: To ask the Chancellor of the Exchequer if he will make a statement on the treatment for the purposes of (a) taxation and (b) tax credits of (i) families with two children of different ages and (ii) families with twins. [137461]

Dawn Primarolo: In any single tax year there are currently no differences in the treatment of families with two children of different ages and of families with twins for the purposes of taxation or tax credits.

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Financial Literacy

Mr. Drew: To ask the Chancellor of the Exchequer if he will publish the Treasury's strategy for improving the level of financial literacy. [136757]

Ruth Kelly: Raising standards of financial literacy is an important part of the Government's wider strategy to reduce social and financial exclusion, and promote appropriate participation in the financial services industry, while tackling overindebtedness, and promote saving. Financially literate, confident, and independent consumers also spur firms to offer high quality, value for money products and services, and promotes effective competition.

A number of departments and agencies are active in achieving our ambitions. For example, we are the first Government to introduce a framework for Personal, Social and Health Education (PSHE) that provides for personal finance education to be taught throughout Key Stages 1 to 4 of the school curriculum.

We also work closely with the Financial Services Authority.

In his 2002 Review of Medium and Long Term Saving Ron Sandier suggested that the FSA should lead and coordinate further work in this area. Partly in response to those proposals, the FSA announced on 20 October 2003 the membership of their Financial Capability Steering Group. This group will bring together government, consumer representatives, the industry, the media, and the regulator to develop and implement a national strategy for financial capability.

The FSA has already delivered a great deal to help consumers and has fostered initiatives on financial literacy, working closely, for example, with the Personal Finance Education Group, which has undertaken valuable work on good practice I delivering personal finance teaching in schools. But the steering group announcement recognised that more needs to be done, to engage with and learn from the widest range of organisation.

Financial Services Authority

Mr. Martlew: To ask the Chancellor of the Exchequer what plans he has to make the equity release market subject to Financial Services Authority regulation. [138959]

Ruth Kelly: Mortgage based equity release schemes will be regulated by the Financial Services Authority (FSA) with effect from 31 October 2004. On 11 November 2003, I published a consultation document seeking views on whether home reversion plans should come within the scope of FSA regulation. Copies of this consultation document are available in the Library.

Flooding

Mr. Kidney: To ask the Chancellor of the Exchequer what assessment he has made of the scope for the application of economic instruments in promoting the development of flood defences. [138933]

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Ruth Kelly: The 2001 Flood and Coastal Defence Funding Review recommended that the Government should consider the application of economic instruments as part of alternative funding streams for flood defence. We agree with the review's analysis and have therefore asked Defra to work up proposals as part of their Spending Review 2002 commitments. They have since consulted on a range of options, including a Floodplain Development Connection Charge to be levied on new developments in the floodplain. The work on this is still at a very early stage, and will be taken forward as part of Defra's new flood management strategy.

Graduate Income

Mr. Hepburn: To ask the Chancellor of the Exchequer what the average wage for a new graduate was in each year since 1997 in (a) the North East and (b) the UK. [137458]

Ruth Kelly: The information requested falls within the responsibility of the National Statistician, who has been asked to reply.

Letter from Colin Mowl to Mr. Stephen Hepburn, dated 17 November 2003:

The National Statistician has been asked to reply to your recent Parliamentary Question about the average wage for new graduates in the North East and the UK. I am replying in his absence. (137458)

Table 1 overleaf gives estimates of the average gross weekly earnings of all working age graduates resident in the UK and the North East region who are full-time employees.

Table 2 gives estimates of the average gross weekly earnings of graduates aged 25 and under resident in the UK who are full-time employees. Similar estimates for graduates aged 25 and under resident in the North East region are not reliable because the survey sample sizes available are too small.

These estimates are from the Labour Force Survey (LFS) for the twelve month period ending August of each year from 1998 to 2003. Estimates for all new graduates, irrespective of age, cannot be produced as the LFS does not include a question about how long ago respondents graduated.

Table 1Average gross weekly earnings of working age⁽¹³⁾ graduates⁽¹⁴⁾ who are full-time⁽¹⁵⁾ employees £

September to August	UK	North East
1997–8	513	453
1998–9	539	488
1999–2000	555	484
2000–1	582	497
2001–2	605	534
2002–3	625	552

⁽¹³⁾ Men aged 16–64 and women aged 16–59

⁽¹⁴⁾ People whose highest qualification is degree level or above

⁽¹⁵⁾ The definition of full-time is based on respondents' self assessment

Note:

These Labour Force Survey (LFS) estimates have not been interim-adjusted to take account of the recent Census 2001 results.

Source:

ONS—Labour Force Survey

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Table 2Average gross weekly earnings of graduates⁽¹⁶⁾ aged 25 and under resident in the UK who are full-time⁽¹⁷⁾ employees

September to August	£
1997–8	285
1998–9	314
1999–0	319
2000–1	341
2001–2	356
2002–3	350

⁽¹⁶⁾ People whose highest qualification is degree level or above

⁽¹⁷⁾ The definition of full-time is based on respondents' self assessment

Note:

These Labour Force Survey (LFS) estimates have not been interim-adjusted to take account of the Census 2001 results

Source:

ONS Labour Force Survey.

International Monetary Fund

John Barrett: To ask the Chancellor of the Exchequer what steps he is taking to reform the workings of the International Monetary Fund in favour of lower income countries. [138389]

John Healey: The UK Government believe that International Monetary Fund (IMF) support to low-income countries should work within its areas of competence to help these countries achieve the macroeconomic stability and supporting policy measures crucial to poverty reduction and delivery of the Millennium Development Goals. The IMF's chief form of support to low-income countries is through the Poverty Reduction and Growth Facility, which was created in 1999. This facility is designed to support country-led poverty reduction strategies, and the UK has been at the forefront of efforts to ensure that the IMF's work is based on these strategies.

Discussions were held at the annual meetings of the IMF and World Bank in Dubai in September where my right hon. Friend the Chancellor of the Exchequer chaired the International Monetary and Finance Committee meetings. The Committee noted that faster growth will be needed in low-income countries in order to reduce poverty, and that this would require stronger policies and institutions, better governance and increased and more effective aid.

The Committee observed that the IMF should remain engaged with these countries in the long-term, encouraging it to undertake further initiatives to support higher sustained growth and poverty reduction, improved governance, and reduced vulnerability to shocks. The IMF will prepare a number of Board papers on these issues, and the Committee looks forward to a review of progress at its next meeting.

The Committee also noted the need for increased and more effective aid, and for enhanced market access. The Committee urged the IMF to work with the World Bank on aid effectiveness, aid absorption, results-based measurement systems and financing mechanisms, including the International Finance Facility. Developing and emerging market countries are being consulted on this, and France will host an international conference in spring next year.

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In respect of representation of developing countries on the Boards of the IMF and World Bank, the Development Committee, meeting in Dubai, agreed to continue efforts to build the necessary political consensus on this issue, with a roadmap to be produced for the spring meetings. The International Monetary and Financial Committee welcomed measures under way and asked the IMF to examine these

issues further.

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