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

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make an estimate of the potential effect of businesses paying the adult minimum wage rate to people under 25 years of age who are not in training but carrying out the same work as those 25 years of age or over on (a) rates of poverty and (b) levels of disposable income for people under 25 years of age.

The Government will publish an impact assessment on the increase in the National Living Wage and the increases in the National Minimum Wage rates announced at Autumn Statement in due course.

The Low Pay Commission also evaluates the impact of the various rates upon both employers and workers, drawing on economic, labour market and pay analysis, independent research and stakeholder evidence. Their report can be found at: www.gov.uk/government/publications/national-minimum-wage-low-pay-commission-autumn-2016-report.

From April 2017 all National Minimum Wage rates, and the National Living Wage, will be increased by more than inflation. The main rate (for 21 – 24 year olds) is expected, at that point, to be at its highest ever level in real terms.