Pay

(asked on 21st February 2020) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the effect of the increase in (a) the National Living Wage and (b) the National Minimum Wage in April 2020 on the number of (i) jobs and (ii) hours that people are employed.


Answered by
Paul Scully Portrait
Paul Scully
This question was answered on 2nd March 2020

Through the National Minimum Wage (NMW) and National Living Wage (NLW), we are ensuring the lowest paid are fairly rewarded for their contribution to the economy. This April, the NLW will increase by 6.2% to £8.72, meaning that a full-time worker on the wage will see their pay increase by over £930 over the year. Young workers on the NMW will see their pay increase between 4.6% and 6.5%. Collectively, these increases to the minimum wage are estimated to directly benefit 2.4 million workers.

In setting these rates, the Government consider the expert and independent advice of the Low Pay Commission (LPC). The LPC draws on economic, labour market and pay analysis, independent research and stakeholder evidence, to assess the impact of past minimum wage increases and their proposed rates for the following year.

To date, the LPC have found that the minimum wage has increased pay for the lowest earners without harming employment. They will publish their 2020 report later this year, which will contain a further assessment on the impact of the latest increases.

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