Economic Inequality

Debate between Lord Newby and Lord Bishop of Worcester

Monday 10th February 2014 Lords Chamber

[Lord Newby]

My Lords, we want to make sure that everybody makes a fair contribution to society and that all those in work get a fair wage for their labour. Obviously, there comes a point when taking too much tax from those right at the top becomes counterproductive. However, certainly in terms of income tax take, the proportion of income tax now paid by the top 1% is at a historically high level.

[The Lord Bishop of Worcester]

My Lords, is the Minister aware of the first report published today by the Living Wage Commission, chaired by my friend the most reverend Primate the Archbishop of York, which found that emerging economic recovery will have no effect on more than 5 million workers unless employers pay a living wage. It found furthermore that 6.7 million of the 13 million people in poverty in the UK are in a family where someone works—which, for the first time, is more than half the total. Will the Minister tell the House what steps the Government are taking to address this real concern?

[Lord Newby]

My Lords, the Government are encouraging employers to pay the living wage where they can. One of the key things about people in work on very low incomes is that a large proportion of them are working a small number of hours or a smaller number of hours than they would like. Economic growth will mean that more of those people are able to work longer hours, which will help deal with their household circumstances.