Asked by: Helen Whately (Conservative - Faversham and Mid Kent)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment his Department has made of the potential impact of proposed changes to the National Living Wage on youth (a) inactivity, (b) unemployment and (c) employment.
Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)
In April 2025, the National Living Wage, payable to eligible workers who are 21 years old and over, will increase by 6.7% to £12.21 per hour. The impact of wage levels on youth employment, unemployment and inactivity (usually defined as 16-24-year-olds) and on incentives to remain in education and training is a key consideration of the Low Pay Commission when it makes recommendations.
This Government is committed to setting the National Minimum Wage and National Living Wage rates in a way that does not have a detrimental impact, and the Impact Assessment for annual rises will consider this issue.
Asked by: Helen Whately (Conservative - Faversham and Mid Kent)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment her Department has made of the potential impact of removing minimum pay age bands for the National Minimum Wage on youth (a) inactivity and (b) unemployment.
Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)
In April 2025, the National Minimum Wage (NMW) rates for workers aged 18 to 20, workers under 18, and apprentices will increase significantly – narrowing the gap between those rates and the National Living Wage.
The impact of wage levels on youth employment and on incentives to remain in education and training is a key consideration of the Low Pay Commission when it makes recommendations. This Government is committed to removing pay bands in a way that does not have a detrimental impact, and the Impact Assessment for annual rises will consider this issue.
Asked by: Helen Whately (Conservative - Faversham and Mid Kent)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment his Department has made on the potential impact of the Employment Rights Bill on levels of (a) employment, (b) unemployment and (c) economic inactivity.
Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)
The Employment Rights Bill Impact Assessments was published on October 21 and can be found here. It illustrates that the provision of better-quality work, more family friendly employment protections and flexible working rights could increase the range of jobs and working patterns that suit individuals. Further, the Impact Assessment finds evidence that the Bill could particularly benefit those who are currently inactive or intermittently working due to childcare responsibilities, long term illness or disabilities. The Impact Assessment also deemed the risk of significant unemployment effects as a result of the Bill to be ‘low’.