Question

To ask the Secretary of State for Business, Innovation and Skills, what assessment he has made of the effect on businesses which have entered into long-term supply contracts of the introduction of the national living wage.

Businesses can respond to the introduction of the National Living Wage in a number of ways. In the case of supply contracts, the response is likely to vary from contract to contract according to specific circumstances. For example, some contracts will include provision for changes in statutory pay requirements.

The Government published a full impact assessment for the introduction of the National Living Wage on 7^th December 2015.