Several constituents have contacted me about the National Minimum Wage and what the Government is doing to protect those on low pay.


Part of the Government’s long-term economic plan is about creating jobs, cutting taxes and making work pay so that living standards rise in a sustainable way. I am pleased the adult minimum wage will increase by 20 pence in October 2015 to £6.70 per hour. This will help 1.4 million of the lowest paid workers and means more economic security for families across the country. This increase will be the largest increase in the minimum wage since 2008 and is only possible because of the careful management of the economy over the last administration. The Government is on course for a minimum wage of £8 per hour by the end of the decade.


It is important to protect those on low incomes, Government decisions that have been made in difficult times have delivered a typical tax reduction of £825 for 26 million people and taken 3 million people out of tax altogether.

 

The Prime Minister has also announced we will continue to reward hard work by raising the Personal Allowance to £12,500 by 2020 which would take one million more of the lowest paid workers out of income tax and mean anyone working 30 hours a week on the minimum wage would pay no income tax at all.


In addition, our manifesto sets out that we will pass a new law to guarantee a Tax Free Minimum Wage, so that no-one earning the minimum wage will pay income tax ever again.