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

A South Shields MP has informed the House of Commons that her constituents are now worse off since the Government introduced the national living wage.

By The Newsroom

Published 10th May 2016, 09:40 BST- 1 min read

Updated 10th May 2016, 11:16 BST

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 Â£7.20 - a rise of 50p relative to the current rate on the national minimum wage (NMW).

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