Living Wage

Department for Business, Innovation and Skills written question – answered at on 28 July 2015.

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Photo of Lord Kennedy of Southwark Lord Kennedy of Southwark Labour

To ask Her Majesty’s Government what assessment they have made of the impact on individuals' and businesses' understanding of wage rules of naming the new higher minimum wage, announced in the recent July budget, a National Living Wage when there is already a living wage rate established by the Living Wage Foundation.

Photo of Baroness Neville-Rolfe Baroness Neville-Rolfe The Parliamentary Under-Secretary of State for Culture, Media and Sport, The Parliamentary Under-Secretary of State for Business, Innovation and Skills

The Government will take steps to ensure the wage rules for the National Minimum Wage and the National Living Wage are clear to employers and employees. The National Living Wage will be implemented through the National Minimum Wage Regulations, in the same manner as the National Minimum Wage uprating in October 2015. National Living Wage rates will be debated in both Houses of Parliament in time to come into force on 1 April 2016. This will mean rules for all wage rates will be found within the National Minimum Wage Regulations.

The Government supports employers that choose to pay above the level of the National Living Wage. However, decisions on what wages to set are for employers and workers to agree as long as employers pay at least the statutory minimum.

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