Question

To ask the Secretary of State for Business, Innovation and Skills, if he will take steps to increase the national minimum wage so that its real terms value is equal to that of January 2010.

This Government is fully committed to the national minimum wage (NMW) set by the independent Low Pay Commission (LPC) at a level that maximises the wages of the low paid without damaging their employment prospects by setting it too high.

We welcome the LPC's 2014 assessment that marks the start of a new phase of bigger, real increases in the minimum wage, provided economic conditions continue to improve. In our recent 2015 remit we have asked the LPC to think ahead and build on the forward guidance that sets out our ambition to see real increases in the NMW.

Furthermore, since its introduction the NMW has increased faster than average earnings and inflation without an adverse effect on employment. From October this year the 3% rise of the adult rate means full time workers on national minimum wage will receive an additional £355 a year. This is the biggest cash increase since 2008.