National Minimum Wage

Debate between Lord Newby and Lord Stoneham of Droxford

Thursday 6th November 2014 Lords Chamber

[Lord Newby]

My Lords, as I said, a number of departments already pay the living wage. It is fair to say that there is a move across the rest of government in that direction, which is not yet complete. It is for individual departments to take those decisions. As far as care workers are concerned, HMRC, which is responsible for enforcing the minimum wage, has done a significant amount of work on this and is increasing its enforcement activities in the care sector and elsewhere. I take the point that the noble Baroness makes. In 2012-13, HMRC identified £3.9 million in arrears of wages for 26,000 workers who were not getting their full whack on the minimum wage.

[Lord Stoneham of Droxford (LD)]

My Lords, there is a sensitive relationship between raising the minimum wage and employment levels. Does my noble friend agree that it is only now, with rising employment and economic growth, that we can afford to give priority to raising the real level of the minimum wage, together with simplifying benefits and raising tax thresholds as a way of helping the low paid?

[Lord Newby]

My Lords, I completely agree with my noble friend; the increase in the tax threshold has made a major impact on living standards. That is why real household disposable income, which is the key figure looking at living standards, increased by some 2.2% in quarter 2 2014, and why the OBR forecast that earnings will rise faster than inflation from the second half of this year for every year to 2018.

Care Sector: Minimum Wage

Debate between Lord Newby and Lord Stoneham of Droxford

Wednesday 27th November 2013 Lords Chamber

[Lord Newby]

My Lords, I certainly pay tribute to the work done by care workers. Obviously, local budgets are constrained. However, to the extent that local authorities are commissioning care, they have an obligation to ensure that their commissioning is done in such a way that the people providing it are not in breach of the conditions on low pay. One of the key points in this area is the provision by HMRC of a free pay and work rights helpline for people who feel that they may be suffering because they are not getting the minimum wage as a result of things such as the travelling time problem that we discussed earlier. The helpline is heavily used, but everybody who rings it will have their case looked into.

[Lord Stoneham of Droxford (LD)]

Does not this report indicate the determination of the Government to insist on compliance with the minimum wage legislation? Within what timetable does the Secretary of State for Business expect his investigation on linking minimum wages to the living wage to come to fruition?

[Lord Newby]

My Lords, the Secretary of State at BIS—Vince Cable—very recently asked the Low Pay Unit to look into this matter with considerable urgency, although I do not think that he has put an absolute date on it. However, the Government take this issue extremely seriously. We hope very much that we can make quicker progress than we have in the past in raising the level of the minimum wage.