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.

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.