Living Wage

Baroness Royall of Blaisdon Excerpts

Wednesday 6th November 2013 Lords Chamber

Asked by

[Baroness Royall of Blaisdon]

To ask Her Majesty’s Government what steps they are taking to promote the adoption of the new rate of the living wage.

[Viscount Younger of Leckie (Con)]

My Lords, the Government support the living wage and encourage businesses to pay it when it is affordable and not at the expense of jobs. We recognise that these are challenging times. We applaud companies that have chosen to pay higher wages. We too are concerned with low pay. That is why we have frozen council tax, cancelled the rise in fuel duty, and by 2014-15 will have taken 2.7 million people out of income tax altogether.

[Baroness Royall of Blaisdon (Lab)]

My Lords, the living wage is good for the country in terms of wealth creation and saving money on welfare bills; it is good for business, as KPMG and the Resolution Foundation have observed; and it is clearly good for individuals who have been hit by the cost of living crisis, some of whom have had to resort to food banks. Do the Government have any understanding of the number of people regularly using food banks who are in full and part-time work? If not, what plans do the Government have to collect this information?

[Viscount Younger of Leckie]

We see that the right way forward—the only way forward—to achieve sustainable increases in living standards is through focusing on economic growth and employment. This is exactly what the Government are doing, with a particular focus on SMEs. As we know, 99% of all businesses are SMEs, with 14.4 million employees. With changes to the tax allowance, low-wage workers who have been squeezed through inflation and low earnings growth can take home much more of their income. We have taken 25 million people out of income tax; they have had a cut.