Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential merits of (a) raising the minimum wage to £10 an hour and (b) ending the lower rates of pay for people under (i) 25, (ii) 21 and (iii) 18 years of age.

The Government considers the expert and independent advice of the Low Pay Commission (LPC) when setting the rates for the National Living Wage (NLW) and National Minimum Wage (NMW). We reward workers with the highest possible minimum wage while considering the impact on the economy and affordability for businesses. In April, the National Living Wage rate will increase to £8.91, a 2.2% increase, and the highest ever UK minimum wage.

The Government’s target is for the NLW to reach two-thirds of median earnings by 2024. This is a floating number to take into account wider trends in average earnings. On current forecasts it is likely to be around £10 an hour.

For younger workers, the priority in those first years is to secure work and gain experience – something that has always been reflected in the National Minimum Wage rate structure. The LPC estimate that almost 230,000 young workers will benefit from the increases in the 2021 NMW rates.

The NLW currently applies to workers aged 25+, however, from April 2021 it will be extended to those aged 23+, following previous recommendations from the LPC. Government is committed to lowering the age threshold of the National Living Wage to age 21+ by 2024, and will continue to monitor economic conditions.