Question

To ask the Secretary of State for Business, Innovation and Skills, if he will bring forward proposals to ensure that all care workers receive at least the living wage for every hour that they work.

The Government encourages employers that choose to pay the Living Wage when it is affordable and not at the expense of jobs. However decisions on what wages to set are for employers and workers to agree as long as employers pay at least the national minimum wage.

We are taking action to improve compliance with the national minimum wage in the social care sector. We are working closely with the Department of Health, Communities and Local Government and HM Revenue and Customs (HMRC) to make workers more aware of their rights and encourage them to call the Pay and Work Rights Helpline on 0800 917 2368 if they think they have been underpaid. HMRC respond to every complaint, as well as undertaking targeted, risk-based enforcement action.

This Government is committed to improving living standards, particularly for the low paid and the only way to achieve a sustainable increase in living standards is to focus on economic growth, employment and cutting taxes for the low paid. This is exactly what we are doing.

In addition to the NMW we are raising the personal allowance, allowing people to take home more of what they earn. From April 2015 the average person will pay over £825 less in income tax than 2010 and over 3.4 million people will be taken out of income tax altogether.