Wealth Inequality

Lord Davies of Oldham Excerpts

Wednesday 21st January 2015 Lords Chamber

[Lord Newby]

My Lords, I make two principal points. The first is that the increased level of employment means that there are now 390,000 fewer children living in workless households, which sets a very important example in those households about their future life prospects. The other point to bear in mind is that there are now record numbers of people from disadvantaged backgrounds going to university, which, as we know, is one of the best ways of ensuring that people get a good, well paid job.

[Lord Davies of Oldham (Lab)]

My Lords, does the Minister not know the evidence which indicates that inequality in this country is increasing? The policy of looking after the rich, based on some kind of theory of a trickle-down effect, is not working. How can there be a situation, under this Administration, where the rich are getting wealthier but the average family is £1,600 a year worse off?

[Lord Newby]

My Lords, it is simply not true: income inequality has not risen under this Administration. The £1,600 figure—which was immensely dubious even when it was first used three years ago—is now completely outdated by the fact that wages are rising in real terms. The key thing in terms of prosperity and, indeed, income distribution is to increase the number of jobs, to increase the number of well paid jobs. We have increased the number of jobs and vastly increased the number of apprentices. That is the how we are going to enable people from the bottom end of the income scale to do better in the future.