asked the Chancellor of the Exchequer if he will make a statement on his policy towards differentials between high and low earners in the light of the low pay unit report published on 9 March, a copy of which has been forwarded to him.

Differentials are necessary to motivate skilled workers and to encourage people to train for skilled and professional jobs, requiring qualifications. But since this Government took office there has been a general rise in living standards for those below average earnings as well as for those above average earnings. Between 1978–79 and 1987–88 the real take home pay of a married man on average earnings is expected to rise 22½ per cent. and a married man on ½ average earnings 18 per cent.