Question

To ask the Secretary of State for Business, Innovation and Skills, what assessment he has made of the effect of the National Living Wage on wage growth in (a) Peterborough and (b) England; and if he will make a statement.

The new National Living Wage is an essential part of moving to a higher wage, lower tax, lower welfare society; it ensures that work pays, and reduces reliance on the State topping up wages through the benefits system. The Government’s target is for the National Living Wage to reach 60% of median earnings by 2020, and we have asked the Low Pay Commission to recommend the National Living Wage going forward.

The Office for Budget Responsibility published its latest analysis of the impact on 25 November, here: http://budgetresponsibility.org.uk/economic-fiscal-outlook-november-2015/

The Government will be publishing an impact assessment for the National Living Wage in due course.