Living Wage and Minimum Wage: Young People

(asked on 2nd November 2021) - View Source

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

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the impact on the disposable income of young people on the National Minimum Wage Youth Rate compared to those who are in receipt of the National Living Wage.


Answered by
Paul Scully Portrait
Paul Scully
This question was answered on 10th November 2021

The Low Pay Commission (LPC) is an independent and expert body which makes annual recommendations on the appropriate rates for National Minimum Wage and National Living Wage, and on other wage-related issues. Its Commissioners are balanced between employer and worker representatives and independent Commissioners. The LPC base their recommendations on economic, labour market and pay analysis, independent research, and stakeholder evidence.

The Government has accepted LPC recommendations to increase the minimum wage rates for all groups from April 2022. The Youth Rate, which applies to those aged 16 & 17, will increase by 19p (4.1%) from £4.62 to £4.81. This equates to an over £300 annual increase to gross pay of full-time workers on the Youth Rate, and our best estimates suggest that around 30,000 16-17 years olds will benefit from this uprating.

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