Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the need for a regional living wage reflecting higher cost of living pressures in major northern cities, including Manchester.

This government is committed to building an economy that delivers for working people. It sets the statutory minimum National Living Wage (NLW) which applies to all employers. When recommending rates for the NLW, the Low Pay Commission considers a range of factors, including the cost of living.

Defining multiple regional economies presents significant challenges and the complexities of enforcing multiple rates would likely impact upon unintentional non-compliance. Furthermore, businesses highlight a strength of the NLW is the simplicity of its administration, with the same rates applying across the country.

The Living Wage Foundation set voluntary London and National Living Wages, but we have not considered implementing a statutory regionally adjusted NLW in the Northwest or any other region in the UK, including London.