Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to reduce the difference between the minimum wage and the State Pension.

The National Living Wage (NLW) and the National Minimum Wage (NMW) are the legal wage floors that employers must follow. The NLW rate is the minimum hourly wage for eligible workers aged 21 and over and the NMW is minimum hourly wage for eligible workers aged 18-20 years old. Each year the Low Pay Commission produces recommendations for the Government on the NLW/NMW rates that aim to protect the lowest paid earners in the economy.

The State Pension is the foundation of state support for older people. To ensure financial security in later life, individuals are expected to save for their retirement. The Government is committed to ensuring that older people are able to live with the dignity and respect they deserve, which is why it committed to Triple Lock the basic and new State Pension for the duration of this parliament and provides generous pensions tax relief to enable savings. Over the course of this Parliament, the yearly amount of the full new State Pension is currently forecast to go up by around £1,900, based on the Office for Budget Responsibility’s latest forecast.