Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, with reference to the Written Statement of 30 July 2024 on Low Pay Commission Remit, HCWS43, by what date will 18 to 20 year olds be in receipt of the single adult National Minimum Wage.

Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)

The Government is committed to delivering a genuine living wage for working people, and removing the discriminatory age bands, so that all adults can benefit.

The new Low Pay Commission (LPC) remit asks the LPC to make progress on extending the National Living Wage to all adults. This will be achieved in the coming years, with the Government basing this decision on robust evidence, as well as the recommendations from the Low Pay Commission.

The new remit is clear that this ambition should be pursued while also taking into account the effects on employment of younger workers, incentives for them to remain in training or education and the wider economy.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, with reference to the Written Statement of 30 July 2024 on Low Pay Commission Remit, HCWS43, what assessment he has made of the potential merits of increasing the floor of the National Living Wage rate to one higher than two-thirds of UK median earnings for workers aged 21 and over.

Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)

The Government has issued a new remit to the Low Pay Commission (LPC) to recommend a National Living Wage (NLW) which takes into account the impact on business, competitiveness, the labour market, the wider economy and for the first time this year, the cost of living, including the expected annual trends in inflation.

When recommending rates, the LPC carries out extensive research and consultation, drawing on economic, labour market and pay analysis, independent research, and stakeholder evidence to inform its recommendations.

When setting new rates, the Government publishes an Impact Assessment (IA) for that year’s increases this sets out the evidence base that informs the Government’s decision on the rate.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, with reference to the Written Statement of 30 July 2024 on Low Pay Commission Remit, HCWS43, what assessment he has made of the potential merits of increasing the National Living Wage in line with the forecast rate of CPI inflation.

Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)

The Government has issued a new remit to the Low Pay Commission (LPC) to recommend a National Living Wage (NLW) which takes into account the impact on business, competitiveness, the labour market, the wider economy and for the first time this year, the cost of living, including the expected annual trends in inflation.

When recommending rates, the LPC carries out extensive research and consultation, drawing on economic, labour market and pay analysis, independent research, and stakeholder evidence to inform its recommendations.

When setting new rates, the Government publishes an Impact Assessment (IA) for that year’s increases this sets out the evidence base that informs the Government’s decision on the rate.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate her Department has made of the number of pensioners living in (a) relative poverty and (b) absolute poverty that are not in receipt of Pension Credit.

Answered by Emma Reynolds - Parliamentary Secretary (HM Treasury)

For the financial year 2022/23, the latest year that data that is available, 1.6m pensioners living in households not in receipt of Pension Credit were in relative poverty after housing costs, and 1.2m pensioners living in households not in receipt of Pension Credit were in absolute poverty after housing costs.

Statistics on the number of pensioners living in absolute and relative poverty in the UK are published annually in the “Households Below Average Income” publication at Households below average income: for financial years ending 1995 to 2023 - GOV.UK (www.gov.uk)(opens in a new tab). The latest available data with breakdowns by receipt of Pension Credit can be found on Stat-Xplore (https://stat-xplore.dwp.gov.uk/) in the ‘Households Below Average Income’ dataset. The latest statistics published on 21 March 2024 are for the financial period 2022/23.

Guidance on how to use Stat-Xplore can be found here: Getting Started (dwp.gov.uk). An account is not required to use Stat- Xplore, the ‘Guest Login’ feature gives instant access to the main functions.

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