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Minimum Wage

Treasury written question – answered on 10th September 2013.

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Photo of Jim Sheridan Jim Sheridan Labour, Paisley and Renfrewshire North

To ask the Chancellor of the Exchequer what research he has undertaken into the potential economic effect of raising the minimum wage to a living wage.

Photo of Jo Swinson Jo Swinson The Parliamentary Under-Secretary of State for Women and Equalities, The Parliamentary Under-Secretary of State for Business, Innovation and Skills

I have been asked to reply on behalf of the Department for Business, Innovation and Skills.

There is no universally agreed definition of the living wage.

The Government's primary policy for supporting the low paid is the national minimum wage (NMW) and the job of the Low Pay Commission (LPC) is to provide independent advice each year on a NMW level which maximises the support for the low paid without damaging their employment prospects. As part of the NMW annual cycle the Government provides evidence to the LPC on the state of the labour market, wages and the macro-economy.

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