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5 Feb 2004 : Column 1004W—continued
Child Trust Funds
John Barrett: To ask the Chancellor of the Exchequer (1) if he will make a statement on the reasons for the decision to have two different initial payment values into Child Trust Funds; [152644]
- (2) what assessment he has made of the likelihood of Child Trust Funds discouraging teenage children from saving through other means; [152645]
(3) what targets his Department has set to encourage (a) low income, (b) middle income and (c) higher income families to make additional contributions to Child Trust Funds; [152722]
(4) what assessment he has made of the ability of families on low incomes to make additional top-up contributions into Child Trust Funds; [152723]
(5) if he will make it his policy to make an additional contribution into a Child Trust Fund when the child reaches 18 years of age on the condition that the accrued funds will be spent on educational facilities; [152724]
(6) whether the Government will make a contribution to a Child Trust Fund between the child's seventh and 18th birthday; and if he will make a statement. [152725]
Ruth Kelly: The objectives of the Child Trust Fund are to:
- ensure that in future all children have a financial asset at the start of adult life to invest in their futures;
- help people understand the benefits of saving and investing;
- encourage parents and children to develop the savings habit and engage with financial institutions; and
- build on financial education to help people make better financial choices throughout their lives.
All children will receive a Government endowment of £250 when their Child Trust Fund account is opened. Families on child tax credit, with an income below the threshold (currently £13,230) will receive an additional £250. The additional endowment for children in low income families will help give their Child Trust Fund accounts a good start and ensures that the Child Trust Fund is both a universal and progressive policy—helping to extend opportunity to all, while targeting support to those that are most in need. The Government have confirmed that there will be a further progressive payment at age seven. This structure provides a foundation on which the Government will build in future.
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Financial information and education are key to helping people make better financial choices throughout their lives. The Government view Child Trust Fund holders as the best judge of what most meets their future needs. By enabling children to interact with their own savings and investment account, and accompanying this with financial education in schools, the Child Trust Fund will help young people to understand the advantages of saving. The Government will commission a range of teaching and learning materials to meet children's needs at different ages, moving towards guidance on possible uses of financial assets, including continuing to save, as the child grows into adulthood.
We do not believe that setting targets for saving in the Child Trust Fund would be helpful since it risks distorting savings priorities. Information and guidance accompanying the Child Trust Fund will encourage parents to consider their savings priorities—be that the repayment of any debt, the need for 'rainy day' savings they can access and/or longer-term savings for their child in the Child Trust Fund.
We are currently developing a monitoring and evaluation plan for the Child Trust Fund.
Research has shown that people on low incomes can and do save. Early findings on the Saving Gateway support this.
Economic Inactivity
Mr. George Osborne: To ask the Chancellor of the Exchequer what recent estimate he has made of the total cost to the economy of economic inactivity. [152935]
Ruth Kelly: The performance of the UK labour market over recent years has been strong by both international and historical standards. In 2002 the standardised inactivity rate for persons aged 15–64 was 23.4 per cent. for the United Kingdom, well below the EU average of 30.2 per cent.
Sharp declines in the unemployment rate have boosted UK GDP growth, and a falling inactivity rate would increase labour supply and add further to the growth rate of the UK economy. That is why this Government attach priority to reducing the inactivity rate. In addition to helping the unemployed back to work, and increasing the skills of the lowest skilled workers, Government policies aim to encourage inactive people who are able to work back into the labour market.
Mr. George Osborne: To ask the Chancellor of the Exchequer if he will make a statement on the major causes of economic inactivity. [152936]
Ruth Kelly: The Government have published an analysis of the extent and causes of inactivity and unemployment, and of the policies in place to address them, in "Full employment in every region" (HM Treasury/Department of Work and Pensions, December 2003).
Employment Statistics
Mr. Webb: To ask the Chancellor of the Exchequer how many (a) men aged 64 and (b) women aged 59 are in paid employment; and if he will estimate the average earnings of each group. [153010]
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Ruth Kelly: The information requested falls within the responsibility of the National Statistician, who has been asked to reply.
Letter from L. Cook to Mr. Steve Webb, dated 5 February 2004:
- As National Statistician, I have been asked to reply to your recent question on how many (a) men aged 64 and (b) women aged 59 are in paid employment; and the estimated average earnings of each group (153010).
- The numbers of people in paid employment are estimated from the Labour Force Survey (LFS). People are considered to be in paid employment if they have done at least one hour of paid work as an employee in the week prior to their LFS interview or if they have a job that they are temporarily away from. The self-employed and people who do unpaid work in a family business and people on Government-supported training and employment programmes are excluded.
- Average earnings are estimated from the 2003 New Earnings Survey (NES) and are provided for full-time employees on adult rates of pay whose pay was unaffected by absence during the pay period. This is the standard definition used for NES tables. The NES does not collect data on the self-employed and people who do unpaid work.
- The following table gives the average gross weekly pay (including overtime) for the groups requested.
| Estimate of number in paid employment | Average gross weekly wage (£) | |
|---|---|---|
| Males aged 64 | 60,000 | 428.10 |
| Females aged 59 | 64,000 | 361.10 |
Notes:
1. Information is provided for average gross weekly earnings including overtime and relates to full-time employees on adult rates whose pay for the survey pay period was unaffected by absence.
2. The LFS estimates have not been adjusted to reflect the 2001 Census results and the figures are not seasonally adjusted. The estimates relate to full-time employees.
Source:
For earnings data: New Earnings Survey, April 2003.
For numbers of persons in employment: ONS Labour Force Survey, Spring (March to May) 2003.
Gangmasters
John Robertson: To ask the Chancellor of the Exchequer what amount has been recovered since 1994 in unpaid income tax and national insurance contributions from gangmasters operating in the agricultural sector. [152878]
Dawn Primarolo: I refer the hon. Member to the answer I gave my hon. Friend the Member for Falkirk, East (Mr. Connarty) on 30 January 2004, Official Report, column 567W.
Inward Investment (Wales)
Mr. Wiggin: To ask the Chancellor of the Exchequer if he will list the levels of inward investment in Wales for each year since 1990, broken down by (a) source country and (b) destination by (i) constituency and (ii) local authority area. [151758]
Mr. Mike O'Brien: I have been asked to reply.
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The figures collected by UK Trade and Investment Inward Investment Group for Wales since 1990 broken down by source country are as follows. The destination of these projects are not recorded by constituency or local authority area.
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This is based on information provided by companies at the time of announcement of the decision to invest in the UK. These figures include only those projects where the Inward Investment Group and its regional partners were involved or which have come to their notice.
| 1990–91 | 1991–92 | 1992–93 | 1993–94 | 1994–95 | 1995–96 | 1996–97 | |
|---|---|---|---|---|---|---|---|
| Australia | 2 | 2 | 2 | 0 | 0 | 1 | 1 |
| Austria | 0 | 0 | 0 | 1 | 0 | 0 | 0 |
| Belgium | 0 | 2 | 2 | 1 | 1 | 3 | 2 |
| Bermuda | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Canada | 1 | 3 | 1 | 4 | 3 | 1 | 1 |
| China | 0 | 1 | 0 | 0 | 0 | 0 | 0 |
| Denmark | 1 | 1 | 3 | 0 | 1 | 1 | 0 |
| Finland | 0 | 0 | 0 | 0 | 1 | 0 | 1 |
| France | 7 | 5 | 4 | 4 | 1 | 3 | 2 |
| Germany | 6 | 12 | 10 | 5 | 5 | 2 | 2 |
| Greece | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Hong Kong | 0 | 0 | 1 | 2 | 0 | 1 | 0 |
| India | 1 | 0 | 0 | 0 | 0 | 0 | 0 |
| Ireland | 2 | 2 | 2 | 5 | 3 | 1 | 1 |
| Israel | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Italy | 1 | 2 | 3 | 2 | 0 | 4 | 4 |
| Japan | 7 | 8 | 2 | 0 | 7 | 6 | 8 |
| Korea | 0 | 0 | 0 | 0 | 0 | 2 | 2 |
| Kuwait | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Liberia | 0 | 0 | 1 | 0 | 0 | 0 | 0 |
| Lichtenstein | 0 | 2 | 0 | 1 | 0 | 0 | 0 |
| Netherlands | 1 | 3 | 4 | 4 | 1 | 0 | 2 |
| New Zealand | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Norway | 1 | 2 | 0 | 1 | 2 | 1 | 0 |
| Poland | 0 | 1 | 0 | 0 | 0 | 0 | 0 |
| Singapore | 0 | 1 | 0 | 0 | 0 | 1 | 1 |
| South Africa | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Spain | 0 | 0 | 1 | 2 | 0 | 0 | 0 |
| Sweden | 3 | 2 | 1 | 0 | 1 | 1 | 1 |
| Switzerland | 1 | 1 | 4 | 2 | 3 | 0 | 3 |
| Taiwan | 1 | 0 | 0 | 0 | 1 | 0 | 0 |
| Thailand | 0 | 0 | 0 | 0 | 0 | 1 | 0 |
| Turkey | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| US | 27 | 20 | 24 | 19 | 21 | 23 | 14 |
5 Feb 2004 : Column 1009W
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