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

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to encourage employers to consider paying above the minimum wage levels set in legislation.

The Government wants to build an economy that works for everyone, where low wage workers are fairly rewarded for their contribution to the UK economy.

We believe that it is essential for employers to ensure that their reward packages are competitive, in order to retain and develop the workers who are fundamental to their success. However, it is ultimately for employers to decide how they manage increases in their wage bill. The Government will hence continue to set a minimum hourly wage, and remuneration above that rate is a contractual matter for the employer and worker.

The Government has committed to ensuring a competitive business environment. The Government’s increase in the Employment Allowance, and reduction in employers’ National Insurance contributions, is estimated to benefit up to 500,000 businesses and charities, and the government’s cuts to the main rate of corporation tax will benefit over a million companies, allowing them to increase the pay of their workers.