National Living Wage

Lord Sentamu Excerpts

Monday 17th January 2022 Lords Chamber

Asked by

[Lord Sentamu]

To ask Her Majesty’s Government, further to the recent rise in the rate of inflation, what plans they have to sustain the increase in the national living wage.

[Lord Sentamu (CB)]

In asking this Question, I declare my interests. I chair the Living Wage Commission and led a debate in your Lordships’ House on 5 May 2020, when 52 Members of the House asked the Government to take action on income inequality and sustainability.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, on 1 April 2022, the Government will increase the national living wage by 6.6% to £9.50. Following this increase, the annual earnings of a full-time worker on the national living wage will have increased by around £5,000 since 2015. The Government are committed to further increasing the national living wage in line with their manifesto commitment to equal two-thirds of median earnings by 2024, and we are on track to achieve this ambitious target.

[Lord Sentamu (CB)]

My Lords, I thank the Minister for that Answer, but given that it was in September 2016 that the Living Wage Commission published its findings, that the Government took six years to raise the minimum wage to the recommended living wage, and that national insurance contributions will increase in April, are the Government, in their levelling-up agenda, going to match their rhetoric on income inequality?

[Lord Callanan (Con)]

I pay tribute to the work that the noble and right reverend Lord does on these matters, and it is important that he raises them; we are grateful for that. As the noble and right reverend Lord is aware, we take advice from the Low Pay Commission—comprising business representatives, worker representatives and independent members—on the appropriate increases, taking into account all the various issues: what is affordable for business, rates of inflation, et cetera. I am proud of the record that we have in increasing the national minimum wage.