Low Pay: Rural Areas

Department for Environment, Food and Rural Affairs written question – answered on 11th November 2020.

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Photo of Baroness Jones of Whitchurch Baroness Jones of Whitchurch Shadow Spokesperson (Environment, Food and Rural Affairs)

To ask Her Majesty's Government what plans they have to address (1) low pay among those living in rural areas, and (2) the gap in average earnings between those living in rural and urban areas.

Photo of Lord Gardiner of Kimble Lord Gardiner of Kimble The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

There is no gap in median earnings between those living in rural and urban areas. Indeed, on a residence basis, in 2019 median gross annual earnings of £24,300 in predominantly rural areas were on a par with those in predominantly urban areas excluding London, which were £24,200.

Government policy is based on economic prosperity and helping people out of poverty wherever they live. The National Living Wage was increased by 6.2% to £8.72 per hour from 1 April 2020, above inflation and average earnings. Rates for younger workers were also increased. These increases were estimated to raise the pay of over 2 million workers across the UK.

Universal Credit promotes work as an effective route out of poverty. The Government has made significant investment to improve Universal Credit through the reduction in the taper rate from 65% to 63% in 2017, and an extra £1.7 billion a year put into Work Allowances by 2023/24, increasing them by £1,000 a year for working parents and disabled claimants from April 2019. This has put an extra £630 a year in the pockets of 2.4 million of the lowest paid households.

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