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

To ask the Secretary of State for Business, Energy and Industrial Strategy, how frequently she plans to raise the National Living Wage to meet the Government target of two-thirds of median earnings by 2024.

The Government has announced that in April 2020 the National Living Wage (NLW) will increase by 6.2 per cent to £8.72 for those aged 25 and over. The Government has also announced inflation-beating increases in the National Minimum Wage (NMW) rates for younger workers and apprentices of between 4.6 per cent and 6.5 per cent.

My Rt. Hon. Friend Mr Chancellor of the Exchequer has pledged that the NLW will increase further, reaching two-thirds of median earnings by 2024, providing economic conditions allow. The Government also plans to expand the reach of the NLW, bringing down the eligibility threshold first to age 23 in 2021 and then to 21 by 2024.

The Government increases the NLW and NMW rates annually with consideration to recommendations made by the independent Low Pay Commission (LPC). The Government will publish the LPC’s 2020 remit, which will include details of the new target for the NLW to reach two-thirds of median earnings by 2024.