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Living Wage

Treasury written question – answered on 22nd January 2020.

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Photo of Grahame Morris Grahame Morris Labour, Easington

What steps he is taking to ensure Departments have adequate funding to the pay the increase in the National Living Wage announced by the Government on 31 December 2019.

Photo of Rishi Sunak Rishi Sunak The Chief Secretary to the Treasury

Spending Round 2019 delivered the fastest planned increase in day-to-day departmental spending in 15 years. Resource spending is set to rise by 4.1% in real terms from 2019-20 to 2020-21.

As usual, departments are responsible for managing changes to pay. Where this policy change might have cost implications in years beyond 2020-21, these should be incorporated into departments’ workforce strategies and will be considered at the Spending Review in 2020 alongside other bids and pressures in their budgets.

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