Companies: Staff

(asked on 7th October 2016) - View Source

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

To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 21 September 2016 to Question 46285, on companies: costs, if he will produce a combined impact assessment of the package of measures announced by his predecessor.


Answered by
Margot James Portrait
Margot James
This question was answered on 14th October 2016

The Government produced an impact assessment prior to the introduction of the National Living Wage.

In preparing this impact assessment, the Government conducted an informal consultation with business groups to understand the likely impact arising from the introduction of the National Living Wage (NLW) – including on pay structures and reward packages. These responses are detailed within the impact assessment.

The impact assessment outlines a “ripple effect” associated with the introduction of the National Living Wage, which indirectly benefits workers up to the 25th percentile of the income distribution. By 2020, the NLW is expected to impact 2.9 million low paid workers directly - whilst a further 3.1 million workers earning above the National Living Wage are expected to see an increase in their income.

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