Question

To ask the Secretary of State for Business, Innovation and Skills, if he will carry out an assessment of the positive and negative effects of setting the minimum wage at £10 per hour.

It is the role of the independent Low Pay Commission to make National Minimum Wage rate recommendations that maximises earnings, without damaging employment prospects.

The National Minimum Wage for those aged 21 and over is currently £6.31, rising to £6.50 from 1 October 2014. Given the remit of the Low Pay Commission, we can conclude that they would consider that a higher rate would have a negative impact on employment.

In its 2015 recommendations, the Government has asked the Low Pay Commission to consider whether we are entering a new phase where real term increases in the National Minimum Wage can be afforded without damaging employment rates.