<p>The Department, all of its arm's length bodies and all of its contractors comply with the National Minimum Wage. This statutory minimum is set by the Government at a rate judged to provide the right balance between employee's earnings, the cost of their employment to employers, and also the level of employment in the UK, which is now at record levels. With significant pressure on public expenditure the Government's scope to go further is constrained. Nonetheless all of our London based staff continue to be paid more than the London Living Wage.</p><p>All of our staff outside of London are paid above the National Minimum Wage. However 229 members of staff in DWP and 57 in arm's length bodies now earn below the new National Living Wage, the majority falling below the new hourly rate by 1p.</p><p>We will continue to take Living Wage rates into account when considering our remit for the 2014-15 pay award.</p><p>I can confirm that no people are employed by the Department for Work and Pensions on a zero-hour contract.</p>