200,000 public sector workers to be on the National Living Wage by 2020...

That's the answer given by Lord O'Neill of Gatley in answer to a written question from Ros this afternoon.

Question:

To ask Her Majesty’s Government what is their estimate of the number of public sector employees currently earning less than the National Living Wage. (HL2582)

Tabled on: 13 October 2015

Answer:

Lord O'Neill of Gatley:

At Summer Budget 2015, the Chancellor announced a new National Living Wage which is a compulsory increase in pay for all workers over 25. It will come into effect in April 2016 at £7.20, 50p above the current National Minimum Wage. The Government will ask the Low Pay Commission to recommend the level of the National Living Wage in each subsequent year, asking them to increase the NLW to 60% of median earnings by 2020. It is estimated that by 2020 approximately 200,000 public sector workers will benefit directly as a result of the National Living Wage.

But, there is an obvious problem here, i.e. the 1% cap on public sector paybill increases imposed by the Government. If that cap includes provision for giving the lowest paid public sector employees a mandatory pay rise, it might not leave much, if anything, for the rest of the staff.

Has the Government thought about this?

Question:

To ask Her Majesty’s Government whether they expect the cost of increasing public sector salaries to the level of the National Living Wage to be met from within the overall 1 per cent pay increase for such workers announced in the Budget. (HL2583)

Tabled on: 13 October 2015

Answer:Lord O'Neill of Gatley:

At Summer Budget 2015, it was announced that the Government will fund public sector workforces for an average pay award of 1 per cent for 4 years from 2016-17.

The impact of the new National Living Wage will be considered during the Spending Review as part of an overall assessment of spending pressures across the public sector.

I don't know about you, but that looks very much like a "no" to me...