Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business and Trade, with reference to the proposals by the Living Wage Foundation, whether he has made an assessment of the potential merits of all publicly funded institutions paying staff the real living wage as calculated by the Living Wage Foundation and the Resolution Foundation.

The government is committed to creating an economy that delivers for working people and businesses alike. The National Living Wage is set by the government, following recommendations from the independent Low Pay Commission, which considers a range of factors, including the cost of living, business impacts and employment levels; this ensures that the right balance is struck between the needs of workers, affordability for businesses and the impact on the economy.

In contrast, the voluntary Real Living Wage is set independently by the Living Wage Foundation and is based on living costs. We welcome employers paying above statutory minimum rates, including the Real Living Wage, where they can afford to do so.