Question

To ask the Secretary of State for Business, Innovation and Skills, what estimate he has made of the effect of the proposed national living wage on (a) absolute and (b) relative child poverty by 2020.

The Government has not estimated the impact of the National Living Wage (NLW) on absolute or relative child poverty in 2020.

Office for Budget Responsibility forecasts suggest a full-time National Minimum Wage worker will earn over £5,200 more by 2020 from the National Living Wage. 2.75 million low wage workers will benefit directly.

By 2017-18, 8 out of 10 working households are forecast to be better off as a result of the personal allowance, national living wage and welfare changes announced in the Summer Budget. 17.7 million households will benefit in total.