Living Wage

Debate between Earl of Courtown and Baroness Sherlock

Thursday 5th November 2015 Lords Chamber

[Baroness Sherlock (Lab)]

My Lords, the KPMG report shows that 72% of 18 to 21 year-olds are earning less than the living wage compared with 17% of those in their 30s, yet the Government have chosen to exclude under-25s from getting what they call the new living wage—in fact, a new minimum rate for over-25s. I would like the Minister to tell the House why. The Paymaster-General, Matthew Hancock, said the reason was that young people were not productive enough to merit a living wage. Is that the reason? If not, what is?

[The Earl of Courtown]

My Lords, as the noble Baroness is aware, the national minimum wage, which covers young people under 25, has had the biggest increase in its rate—3%—since 2006. This means that the national minimum wage is closer to the average wage than ever before. She asked a number of other questions that I do not—

[Baroness Sherlock]

The question was “Why?”.