Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to address pay disparity outside of London for (a) women, (b) ethnic minorities and (c) disabled people.

The Government is responsible for setting legal minimum wage floors which protect vulnerable low paid workers. The UK has a national wage policy. Having a single national rate is clear and simple for employers to understand. Introducing regional rates would make the system more complex and increase the risk of non-compliance.

To help tackle low pay in the UK, in 2016 the Government introduced the National Living Wage (NLW). Each year, the independent Low Pay Commission (LPC) produces recommendations to the Government on the National Living and Minimum Wage rates. The LPC has representatives from business, employee, and academic communities, and reached a consensus agreement on the rates.

The Government has accepted the independent Low Pay Commission’s (LPC) recommendations on the main rates. Consistent with the Government’s target, on 1 April 2022, the Government increased the NLW by 6.6% to £9.50 an hour for workers aged 23+. This helps keeps us on track to meet our target, which will help make significant progress on ending low pay by 2024-25. Women, individuals from some ethnic minority backgrounds, and those with a disability are disproportionately likely to benefit from this increase.