Question

To ask the Secretary of State for Business, Innovation and Skills, what steps he is taking to encourage employers to implement the living wage; and what estimate he has made of the number of employees who earn less than the living wage.

We have encouraged employers by publicly expressing our support for paying the Living Wage when it is affordable and not at the expense of jobs.

To encourage higher living standards we have: raised the personal allowance providing an additional £700 in employee’s pay packets, increased the National Minimum Wage year-on-year despite the worst recession in living memory and on October 1^st 2014 increased the minimum wage in real terms for the first time since 2007. The Low Pay Commission has reported that real increases are set to continue each year providing the economy continues to grow.

Finally, recent employment growth means that there are now more people in work than ever before providing welcome opportunities for those seeking work.

According to the 2014 Annual Survey of Hours and Earnings there are around 5.7 million paid below the Living Wage or 22.7 per cent of workers.