Living Wage

Lord Young of Norwood Green Excerpts

Monday 9th June 2014 Lords Chamber

[Viscount Younger of Leckie]

We encourage businesses to pay the living wage—indeed, the living wage or above. However, I say again that a mandated pay floor, completely detached from an affordable level, is likely to bring about job cuts. The National Institute of Economic and Social Research has estimated that increasing the national minimum wage to the living wage would cause a net job loss of 160,000.

[Lord Young of Norwood Green (Lab)]

My Lords, I trust that the Minister would agree that the introduction of the minimum wage in fact benefited millions of people who were on appalling levels of pay. Perhaps the problem with the minimum wage has been to ensure its consistent enforcement. At long last, the Government have got down to improving those measures but we still have a long way to go. What consideration has been given, first, to increasing the penalties, secondly, to ensuring that local authorities play a part in ensuring enforcement of the minimum wage and, thirdly, that all those who fail to pay it—including a major premier football club—are named and shamed?

[Viscount Younger of Leckie]

The noble Lord makes some good points about enforcement. We are taking strong action on this front. He will be aware that 25 other firms have been named and shamed in the past few days. The case of the Premier League football club that the noble Lord raises was dealt with under the old naming policy, pre-October 2013, and did not meet the financial criteria of £500 per worker so could not be considered for naming.