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Cardiff Road
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NP10 8XG
Tel: 01633 456395
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Adeiladau’r Llywodraeth
Heol Caerdydd
Casnewydd
NP10 8XG
Ffôn: : 01633 456395
Ebost: [email protected]
www.ons.gov.uk
Gordon Marsden MP
House of Commons
London
SW1A 0AA
March 2015
Dear Mr Marsden
As Director General for the Office for National Statistics, I have been asked to reply to your recent
Parliamentary Question asking The Chancellor of the Exchequer what proportion of people in employment
in Blackpool South constituency were earning (a) the minimum wage or below and (b) the living wage or
below in (i) 2010, (ii) 2011, (iii) 2012, (iv) 2013, (v) 2014 and (vi) 2015 (228832).
The Annual Survey of Hours and Earnings (ASHE), carried out in April each year, is the most
comprehensive source of earnings information in the United Kingdom. Figures relate to employee jobs,
which are defined as those held by employees and not the self-employed. A single individual may have
more than one job.
The ASHE data show that there are a large number of employee jobs with hourly earnings very close to, but
not exactly at, the National Minimum Wage (NMW). So, while the ONS provides estimates of the number
and proportion earning less than the NMW, it is not possible to reliably estimate the numbers with earnings
at the NMW exactly. In addition ONS does not produce these estimates at parliamentary constituency level
for quality reasons. The lowest level of geography for which estimates are produced is region.
As the living wage rate is higher than the NMW rate, the sample size is sufficient at parliamentary
constituency level to produce reliable estimates. In addition, as the living wage is not a legal requirement,
there is not the same issue as with the NMW of earnings being clustered around the rate. Table 1 shows
estimates of the proportion of employee jobs with hourly earnings (excluding overtime) less than or equal to
the living wage proposed by the Living Wage Foundation for Blackpool South constituency up to April 2014
(the latest period for which estimates are available).
Note that there are two UK living wage rates, one for employees working in London and one for employees
working outside London. The London living wage was introduced in April 2005 and the living wage for
outside London was introduced in May 2011. Therefore, estimates for Blackpool South constituency are
only available since 2012. The living wage rates change each year, and are stated in the table footnotes.
Yours sincerely,
Glen Watson
Director General for ONS
Table 1: Percentage of employee jobsa with hourly pay (excluding overtime) less than or equal to the
living wageb in Blackpool South constituency, April 2012 to 2014
Year (April)
2012
2013
2014p
% of
employee
jobs
33.0
39.5
42.1
Source: Annual Survey of Hours and Earnings (ASHE), Office for National Statistics
Notes:
a. Employee jobs are defined as those held by employees and not the self-employed. Figures relate to employees on
adult rates whose pay for the survey pay period was not affected by absence. ASHE is based on a 1% sample of jobs
taken from HM Revenue and Customs' Pay As You Earn (PAYE) records. Consequently, individuals with more than
one job may appear in the sample more than once.
b. The living wage rates proposed by the Living Wage Foundation that applied on the ASHE reference date each year
were as follows:
2012 - £7.20 for employees who did not work in London.
2013 - £7.45 for employees who did not work in London.
2014 - £7.65 for employees who did not work in London.
p. 2014 data are provisional.
Guide to quality:
The coefficient of variation (CV) indicates the quality of an estimate; the smaller the CV, the higher the quality. The true
value is likely to lie within +/- twice the CV. For example, for an estimate of 50% with a CV of 5%, we would expect the
true population proportion to be within the range 45% to 55%. This is given by 50%+/-({2*0.05}*50).
All estimates in the table above have a CV of greater than 5% and less than or equal to 10%.