Question

To ask Her Majesty’s Government what plans they have to address income pressures on people aged under 25 in the light of the additional costs of student maintenance, reduced access to housing support and their ineligibility for the new National Living Wage.

The overall maintenance support available to students in loans will increase to the highest level ever for students from low-income households. The Government will also continue to provide maintenance loans to students from all backgrounds to cover the costs of living while studying. These loans are only repaid once borrowers’ earnings rise above £21,000.

The priority for younger workers under 25 is to gain skills and experience and secure work - something that is already reflected in the National Minimum Wage rate structure where the youth rate is currently £1.40 lower than the adult rate. Wages tend to increase through the early 20s as workers gain more experience. Therefore, the wages of younger workers will continue to be underpinned by the core National Minimum Wage as recommended by the Low Pay Commission at the highest possible level without affecting employment.