South Shields MP says the new living wage has left people with cash shortfalls

Labour's Emma Lewell-Buck spoke during a question and answers session with the Secretary of State for Work and Pensions Stephen Crabb yesterday.

Mrs Lewell Buck informed members that the living wage - which was introduced last month - has left some residents in South Shields worse off.

She said: "One of my constituents who works 16 hours a week and is a carer for a disabled relative has discovered that because of the living wage she no longer qualifies for carer’s allowance, leaving her with a substantial shortfall. Why on earth have this Government forced her and thousands of others into this desperate situation?"

From 1 April 2016, the government introduced a new mandatory national living wage for workers aged 25 and above, initially set at £7.20 - a rise of 50p relative to the current rate on the national minimum wage (NMW).

That’s a £910 per annum increase in earnings for a full-time worker on the current NMW. The adult NMW rate which was £6.70 still applies for those aged 21 to 24.