Living Wage

(asked on 11th May 2021) - View Source

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

To ask Her Majesty's Government what plans they have, if any, to increase the minimum wage to a living wage.


Answered by
Lord Callanan Portrait
Lord Callanan
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 25th May 2021

Through the National Minimum Wage and the National Living Wage (which applies to those age 23 and above) the Government protects the lowest paid within our society. The Government sets the National Minimum Wage and National Living Wage rates annually and has a target for the National Living Wage to reach two-thirds of median earnings by 2024, providing economic conditions allow. The Low Pay Commission, which is an independent and expert body, makes annual recommendations to the Government on the appropriate rates.

The Living Wage Foundation regularly publishes a rate called the ‘Living Wage’. This rate differs from the National Minimum Wage and National Living Wage rates because the Low Pay Commission considers the wider impacts on businesses and the economy before making their recommendations to the Government. We commend employers who pay more when they can afford to do so. The Living Wage Foundation is clear their measure is voluntary.

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