Asked by: Holly Lynch (Labour - Halifax)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Innovation and Skills, whether he has made an assessment of the implications for his Department's policies of the TUC's oral evidence to the National Minimum Wage Low Pay Commission Report Spring 2016, page 242, on the rate of labour market improvement for those aged between 21 and 24.
Answered by Nick Boles
Setting different minimum wage rates according to the age of the worker helps to protect the employment prospects of younger workers.
While this has improved recently, those aged 21 to 24 have a marked difference in labour market dynamics when compared to older workers. This is evident through differences in their median earnings, employment rates and unemployment rates.
The Low Pay Commission (LPC) recommends National Minimum Wage (NMW) rates to Government based on detailed consideration of the evidence on the economy, labour market and pay, as well as wide ranging consultation evidence. Earlier this year the Government accepted all of the LPC’s recommendations for NMW rates for workers aged under 25; this means the 21-24 year old NMW rate will increase by 25p (3.7 per cent) to £6.95 per hour in October. This is the largest single increase in the main rate of the NMW since 2008 in cash terms.
Asked by: Holly Lynch (Labour - Halifax)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Innovation and Skills, how his Department assesses differences in productivity levels between workers aged under and over 25.
Answered by Anna Soubry
There are no official statistics estimating the productivity of workers by their age. Labour productivity as provided by the Office for National Statistics is only separately estimated by sector.
Asked by: Holly Lynch (Labour - Halifax)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Innovation and Skills, what comparative assessment he has made of productivity levels of workers aged under and over 25 in the (a) hospitality and (b) retail sectors; and what account is taken of such productivity data in determining the level of the National Minimum Wage.
Answered by Nick Boles
While labour productivity statistics are estimated by sector, there are no official statistics estimating the productivity of workers by their age.
The Low Pay Commission (LPC) recommends National Minimum Wage (NMW) rates to Government based on detailed consideration of the evidence on the economy (including productivity statistics), labour market and pay, as well as wide ranging consultation evidence. Earlier this year the Government accepted all of the LPC’s recommendations for the NMW rates that should come in to force in October this year for workers aged under 25.
Asked by: Holly Lynch (Labour - Halifax)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Innovation and Skills, what equality assessment the Government has made of its policy to provide the national living wage only for people aged 25 and over.
Answered by Nick Boles
The Government published its Impact Assessment of the National Living Wage (NLW) on 7 December 2015 which included equality analysis of the policy.
The NLW has provided a higher wage floor for those aged 25 and over because of the need to protect the employment prospects of younger workers. The priority for younger workers is to secure work and gain experience so they can compete in the labour market. Additionally, those aged 21 to 24 have a marked difference in labour market dynamics when compared to older workers, evident through their median earnings, employment rates and unemployment rates.
The design of the NLW reflects provisions in the National Minimum Wage Act allowing rates to vary up to the age of 25, under clause 3.