Tax Credits (Working Families)

Debate between Baroness Ritchie of Downpatrick and Shabana Mahmood

Tuesday 7th July 2015 Commons Chamber

[Shabana Mahmood]

I think that what we are talking about is the cost of making work pay in the economy that we have at the moment. As I will explain in more detail later, the Government are doing things the wrong way round. As was pointed out by the Chair of the Work and Pensions Select Committee, my right hon. Friend the Member for Birkenhead (Frank Field), we must establish a higher-skill, higher-wage economy before we remove the support for those who are stuck on low pay. I would prefer people not to be in that position.

[Ms Margaret Ritchie (South Down) (SDLP)]

My hon. Friend is advancing powerful arguments. Does she agree that there is a compelling need for the Government to spell out how they intend to increase pay to a living wage, and increase economic growth, so that people can have more access to jobs in our economy?

[Shabana Mahmood]

I think that it is for the Government to tell us what they plan to do about the living wage, and I hope that the Minister will enlighten us when he winds up the debate. At the time of the general election, we made a manifesto commitment to incentivise employers to pay the living wage. The Government are welcome to steal that policy, but they should steal it—and allow it to embed a living wage, and higher wages, in our economy—before they start messing around with tax credits.