Question
To ask Her Majesty’s Government why they have labelled the national minimum wage of £7.20 an hour as "the national living wage" when it falls below the UK Living Wage and London Living Wage set by the Living Wage Foundation.
Answered on
10 February 2016
The National Living Wage will come into force on 1 April 2016. We estimate that a full-time National Minimum Wage worker will earn over £4,400 more by 2020 from the National Living Wage in cash terms.
This Government is committed to improving living standards, particularly for the low paid. Guided by a proportion of median earnings which leading experts recommend, the National Living Wage recognizes the balance needed of an affordable rate for businesses with achieving a significant increase in minimum pay.
The Low Pay Commission will continue to make recommendations on the appropriate rate for the National Living Wage going forward, to make sure that wages rise to reward workers while considering the impact on the economy.