Low Pay: Resolution Foundation Report

Lord McFall of Alcluith Excerpts

Tuesday 11th November 2014 Lords Chamber

[Lord Ashton of Hyde]

I think that it is covered, but the position on workers such as those mentioned by my noble friend is that if one is working as part of one’s job, one should be paid the minimum wage. People who are travelling should be paid the minimum wage. If they are not, that is a question of fact, which should be taken up at employment appeal tribunals. That would determine whether they are paid the minimum wage.

[Lord McFall of Alcluith (Lab)]

My Lords, we are in an economic era of falling unemployment but falling wages, with the number of people earning less than £7.69 an hour at a record 5.2 million in the United Kingdom. Do the Government recognise that economic growth alone will not solve this problem and that we need new policy initiatives in the labour market so that we do not end up with a working society of haves and nearly-haves?

[Lord Ashton of Hyde]

I completely agree with the noble Lord. It is not just the economy itself but the other things that need to be done to address this issue. We need to create jobs, reduce the tax burden on the lower paid—in that respect, 3.2 million in this Parliament have been taken out of income tax—and invest in skills.