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While not opposing the increases, questions were raised about the impact on public sector workers, particularly in NHS and universities where the new legal minimum is higher than current rates. Concern was also expressed regarding the impact on younger workers due to the national insurance threshold dropping to £5,000 per year from April 2024, potentially affecting hiring practices for young people. Additionally, there are concerns about the disproportionate burden placed on small and medium-sized enterprises (SMEs) which will face 56% of the cost increase despite representing only 37% of employment share. The impact assessment suggests businesses in retail, hospitality, and leisure sectors will be most affected.
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Acknowledges the concerns raised but points to economic evidence showing that increases in minimum wages generally lead to overall pay rises without significant negative impacts on employment. The first time the national minimum wage is being linked directly to the cost of living, beginning a journey towards making it a genuine living wage.
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Agrees with his colleague's point that similar concerns were raised at the time of introducing minimum wages but notes that historical evidence shows no significant negative impact on employment when such increases are implemented.
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The hon. Member agreed that the uplift in the minimum wage is a huge boost for equality, benefiting women, younger and older workers, and those from minority ethnic backgrounds more than others.
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The Liberal Democrat spokesperson welcomed the statutory instrument and acknowledged that it uplifts the minimum wage. She noted its importance for apprentices under 18 and expressed concern about care workers' low wages, suggesting a carer's minimum wage proposal which would see carers receive £2 more per hour than the current minimum wage.
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The hon. Member drew attention to her trade union background and highlighted the introduction of the national minimum wage in 1999 which was a significant achievement. She stated that the changes with this legislation mean a direct, real-terms pay increase for over 3 million workers including record increases for those aged 18 to 20.
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The SNP Member supports the changes but believes in a real living wage for all workers. He argued that the current definition falls short of meeting actual cost-of-living expenses, and questioned why rent is not 18% lower for those under 21.
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The Scottish Government have taken proactive steps to ensure the real living wage is implemented wherever they have control. Since 2011, all staff within their pay scheme, including NHS staff, are paid the real living wage. Scotland has the highest proportion of employees paid the living wage in the UK with 25% of accredited employers based there. The Scottish Government also provide funding to enable adult social care workers to be paid the living wage.
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Welcomes the Government's move for a record pay boost of around £1,400 to over 3 million workers. This includes a gross annual full-time earnings rise by £2,500 for 18 to 20-year-olds and an 18% increase for apprentices.
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Welcomes the increase in national minimum wage but highlights challenges faced in social care, both nationally and in Devon. He calls for a separate higher minimum wage for social care and proposes an additional tax on gambling industry to fund it.
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Welcomes Labour’s Employment Rights Bill which includes negotiating frameworks for social care staff, ensuring they are properly paid and can progress in their jobs.
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Strongly welcomes the proposed increases to minimum wage rates, particularly for apprentices and 18 to 20-year-olds. He argues that fair reward for economic contributors is crucial for economic growth.
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Supports this Government's actions in making work pay, highlighting the benefits of a motivated workforce and local economy support through decent wages.
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This debate about four numbers: 3 million, £1,400, £2,500 and 10 million. Three million people will benefit from the fantastic measures being announced today; £1,400 is how much they will benefit—a real life-changing amount—while £2,500 is how much someone aged 18 to 20 years old will benefit from these changes and 10 million people’s lives will see a transformative impact. The introduction of the national minimum wage was a radical and transformative step opposed every step of the way by the Conservatives.
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The Labour Government have made it clear that this is only the start of a journey. We are working towards increasing the youth rate so that we eventually have a single adult rate. The change in the youth rate goes hand in hand with our youth guarantee and our plan to create pathways to good-quality employment for those under 22 with health conditions.
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The introduction of the national minimum wage was a radical and transformative step. When Labour brought it to this place as legislation in 1998, the Conservatives fought it tooth and nail every single step of the way.
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Young people in my constituency deserve a minimum wage that reflects the work they do. I speak to many 18 to 20-year-olds who face the same financial pressures as adults older than them.
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The hon. Member for Honiton and Sidmouth talked about the importance of that sector. Our impact assessment has established that about one in five social care workers will receive a direct pay rise as a result of the increases announced today.
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Raised concerns about the costs and bills of an 18-year-old being similar to those of adults, emphasising the importance of parity for that age group on the full adult rate. Criticised the current status quo and highlighted the need for further action.
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Emphasised the regional impacts of the wage increase in his constituency, noting that 140,000 workers (14.5% of the total workforce) in the north-east will benefit from the increase.
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Discussed in-work poverty and supported the change to ensure that in-work poverty is consigned to history books, highlighting the need for action on this issue.
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Highlighted figures associated with the regulations, noting the tangible proof of a Labour Government delivering for working people. Also commented on the empty Opposition Benches.