What assessment has the Minister made of the impact that the increase in minimum wage to £11.44 will have on tackling poverty?
The UK Government’s decision to implement the recommendations of the Low Pay Commission and increase the National Living Wage and National Minimum Wage is the least we would expect.
Whilst this increase will make a difference to the lowest paid workers, it will not end poverty pay. The National Living Wage and National Minimum Wage continues to lag behind the Real Living Wage, which is independently calculated to reflect the cost of living more accurately.
We also know there are persistent issues with enforcement of the National Living Wage and National Minimum Wage across the UK. In 2019, the UK Government promised an Employment Bill and the establishment of a Single Enforcement Body to clamp down on non-compliance, instead many workers continue to be underpaid a minimum hourly rate they are entitled to.