GLA Analysis of National Living Wage Impact in London

Committed By: 
The Mayor
In response to: 

Commitment

Len Duvall AM:  Can you also give an undertaking that as part of your renewed commitment to the real London Living Wage, you will undertake a study through the Greater London Authority (GLA) Living Wage Unit of what the National Living Wage in London will need to be set at to compensate for the cuts in in-work benefits announced by the Chancellor in 2015 ‑‑

Boris Johnson MP (Mayor of London):  Yes.  I understand, Len, yes.

Len Duvall AM:  ‑‑ because that must have a say in terms of where you are coming from about the real London Living Wage?

Boris Johnson MP (Mayor of London):  Len, you are right that we should be looking into whether there should be a National London Living Wage weighting.  The trouble is that this conversation is now going to get so complicated that people will cease to follow which living wage we are talking about.  We could get to a new National London Living Wage weighting, just as there is under the existing Minimum Wage.  There is a London weighting and I think that is what you are driving at.  That is one conversation.

[...]

Len Duvall AM:  Mr Mayor, I am under pressure on time.  I take it that somewhere in that answer was a yes to the study that you will do with the GLA unit to help us with the lobbying.

Boris Johnson MP (Mayor of London):  Yes.

Len Duvall AM:  Then there is one further group that I would ask you to consider lobbying for.  In London’s demographics, we have approximately 50% more 20-to-24-year-olds than the national average.  Will you also lobby for a full or partial exemption for London from the rule that only people aged over 25 will receive the National Living Wage?  There does seem to be a big problem here for London and for that section of our community and it makes no sense at all.

Boris Johnson MP (Mayor of London):  I understand that.

Len Duvall AM:  Is that a simple yes or no?

Boris Johnson MP (Mayor of London):  Yes.

Len Duvall AM:  Will you look into it?  Maybe there might well be some further support from the Assembly for these particular areas because they will have a major impact on our young people.

Boris Johnson MP (Mayor of London):  What I certainly will undertake, Len, is to look at the particular impacts of the Budget on under-25s.  That is reasonable.  People should bear in mind that on the whole in London, in spite of the costs of living here, people do better.  They are paid more.  There are more opportunities here in London.  To put it mildly, there are considerable advantages of living in London, which we should not neglect as well.  However, given the threshold that was established in the Budget for the National Living Wage of only over-25s, it is reasonable that we should look at the impacts for under-25s as well.

Len Duvall AM:  Thank you.