Living Wage: Young People

(asked on 21st July 2015) - View Source

Question

To ask the Secretary of State for Business, Innovation and Skills, for what reasons the new Living Wage does not apply to those under 25.


Answered by
 Portrait
Nick Boles
This question was answered on 16th September 2015

The new National Living Wage (NLW) is an essential part of moving to a higher wage, lower tax, lower welfare society; it ensures that work pays, and reduces reliance on the State topping up wages through the benefits system.

For younger workers, the priority is to secure work and gain experience - something that is already reflected in the National Minimum Wage (NMW) rate structure where the youth rate is currently £1.40 lower than the adult rate.

Just as the Low Pay Commission will recommend the pace of increase for the NLW, they will continue to recommend the NMW rates for all workers under 25 at a level that maximises their earnings without damaging employment prospects by setting it too high.

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