Low Pay

Treasury written question – answered on 25th March 2020.

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Photo of Alexander Stafford Alexander Stafford Conservative, Rother Valley

To ask the Chancellor of the Exchequer, what steps he is taking to increase wages for low-paid workers.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

Low paid workers will continue to benefit from above-average pay rises, with the National Living Wage (NLW) set to reach two-thirds of median earnings and to be extended to workers aged 21 and over by 2024, providing economic conditions allow. This is projected to benefit nearly four million low-paid workers. The expert and independent Low Pay Commission (LPC) has been tasked with recommending the NLW rates in order to reach these targets.

The Government also announced at the end of 2019, following the recommendations of the LPC, that it will increase the NLW by 6.2% to £8.72 an hour on 1 April 2020. The 2020 rate will mean a full-time NLW worker’s annual gross earnings will rise by over £930. Compared to the current NLW rate (£8.21), full-time NLW workers are projected to see a pay rise of over £4,000 by 2024.

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