Commons Sense

House of Commons · Ministers' Questions

National Living Wage

Tuesday 6 February 2024 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Government increased the national living wage recently.
  • Government supports businesses facing higher costs with a package of support.
  • Government monitors the effects of the national living wage increases.

Topics (select to filter)

Questions & Answers

Q1 Luke Evans Con Hinckley and Bosworth
Economy Employment Local Government
Context

The MP noted that the national living wage is set to increase, affecting workers' annual earnings by over £1800. He highlighted concerns raised by local councils and businesses about their ability to cover higher wages.

Question

What recent progress has been made on raising the level of the national living wage? I congratulate the Government on increasing the national living wage, because that will make a huge difference. However, after speaking to not only those in the public sector, at the likes of my local Leicestershire County Council and Hinckley and Bosworth Borough Council, but small businesses in the private sector, I know that there is a trade-off, because they have to foot that wage bill. What steps can the Government take to make sure that those businesses and the public sector have the money to pass on to those who are earning so well?

Answer from Laura Trott

The Government continue to support businesses with the higher costs through a generous package of support. At the autumn statement, we showed our commitment to supporting small businesses by extending the 75% retail, hospitality and leisure relief, and by freezing the small business multiplier, which will protect more than 1 million properties from the multiplier increase. Yesterday, we announced a wide-ranging package of support worth £600 million for local councils, including £500 million of new funding for social care.

Partly answered

Not addressed: Did not specify steps to ensure that all businesses and public sector entities have the necessary funds specifically for wage increases

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Q2 Luke Evans Con Hinckley and Bosworth
Employment Business & Trade
Context

The MP raised concerns about the potential adverse impacts of a significant increase in the national minimum wage, particularly on small businesses. He sought assurance that future increases would be closely monitored.

Question

I understand that concerns were expressed some years ago about how a significant increase in the minimum wage may well have a knock-on effect, particularly on the hospitality sector. Given that that did not come about with previous living wage increases, will the Chief Secretary commit her Government to ensuring that future increases will be monitored closely to enable and assist small businesses to increase wage levels systematically and sustainably over the longer term?

Answer from Laura Trott

I can commit to the hon. Gentleman that we are absolutely monitoring the effects, but, as I said, a good package of support is in place for businesses.

Partly answered

Not addressed: Did not provide specific commitment on systematic and sustained monitoring of future increases

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Q3 Gregory Campbell DUP East Londonderry
Employment Business & Trade
Context

The MP highlighted previous concerns about the potential adverse impacts of a significant increase in the minimum wage, particularly on small businesses. He sought assurance that future increases would be closely monitored.

Question

I understand that concerns were expressed some years ago about how a significant increase in the minimum wage may well have a knock-on effect, particularly on the hospitality sector. Given that that did not come about with previous living wage increases, will the Chief Secretary commit her Government to ensuring that future increases will be monitored closely to enable and assist small businesses to increase wage levels systematically and sustainably over the longer term?

Answer from Laura Trott

I can commit to the hon. Gentleman that we are absolutely monitoring the effects, but, as I said, a good package of support is in place for businesses.

Partly answered

Not addressed: Did not provide specific commitment on systematic and sustained monitoring of future increases

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