The most significant effect of the introduction of a minimum wage, in so far as it affects my Department's areas of responsibility, will be the positive impact it would have on the incentive for unemployed people to make the transition into employment. I do not envisage that a minimum wage should have a direct effect on social welfare payment rates.
The level of social welfare payments is influenced by a range of policy objectives which are reflected in key commitments contained in the Government's programme —"An Action Programme for the Millennium"— and in the Partnership 2000 agreement.
In the Government's programme, for instance, we included a commitment to provide for substantial increases in social welfare payment rates, including increasing the old age pension to £100 per week over a five year period. Partnership 2000 provides, inter alia, for the implementation of the minimum rates recommended by the Commission on Social Welfare before the end of the partnership. The substantial increases provided for in the 1998 budget represent significant steps towards meeting those commitments.