Living Wage: Universal Credit
The question
To ask the Secretary of State for Work and Pensions, for what reason there is an age differential between the national living wage age band and the lower universal credit band.
Answered by Sir Stephen Timms
Young people in work typically earn less than those over 25 and are also more likely to live in someone else’s household, with lower living costs.
It is not inconsistent to maintain different rates of Universal Credit while moving to a single rate of the National Living Wage. Even with the rise of the minimum wage, younger workers will still, in general, earn less.
The lower rate of Universal Credit maintains an incentive to work as we continue to support young people into employment and to improve their career opportunities.
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