Living Wage

Department for Business, Energy and Industrial Strategy written question – answered on 8th November 2021.

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Photo of Rachael Maskell Rachael Maskell Shadow Minister (Digital, Culture, Media and Sport)

To ask the Secretary of State for Business, Energy and Industrial Strategy, how he assesses the adequacy of the National Living Wage on levels of poverty according to the cost of living in different areas.

Photo of Paul Scully Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London)

The Low Pay Commission (LPC) is an independent and expert body which makes annual recommendations on the appropriate rates for National Minimum Wage and National Living Wage, and on other wage-related issues. Its Commissioners are balanced between employer and worker representatives and independent Commissioners. The LPC base their recommendations on economic, labour market and pay analysis, independent research, and stakeholder evidence.

Having a UK-wide minimum wage policy provides clarity for employers that operate across the UK. This reduces the burden on business and reduces the scope for non-compliance due to mistakes.

The increases in April 2022 will benefit people across the UK, but particularly those in regions such as the North East, East Midlands and Northern Ireland. The LPC will publish further detail on this as part of its full report later this year.

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