asked the Secretary of State for Trade when the limit of £200 per employee for preferential claims against insolvent employers was established; what the current equivalent will be in the light of present-day values and if he will increase the limit.

The limit was established in the Companies Act 1974. I understand that the current equivalent to the £200 limit at the present-day values is about £765. Proposals for restoring the value of monetary limits are being considered in connection with possible future insolvency legislation.