Living Wage
Debate between Viscount Younger of Leckie and Lord Elystan-Morgan
Viscount Younger of Leckie
The noble Baroness makes a good point. Unlike the national minimum wage, which aims to maximise support for the low-paid without damaging their employment prospects, the living wage is derived from an assessment of households’ living standards. Although that is important, it focuses on household expenditure rather than the income and affordability of companies.
Lord Elystan-Morgan (CB)
My Lords, does the Minister accept the recently published findings of the Resolution Foundation in relation to a minimum living wage? Its contention is that if a payment of £8.80 per hour in the London area or £7.65 per hour outside London were made to all public workers, there would be a net saving to the public purse of no less than £2 billion per annum? Do the Government accept those figures? Have they made their own calculations, and if not will they now do so and publish them?
Payday Loans
Debate between Viscount Younger of Leckie and Lord Elystan-Morgan
Viscount Younger of Leckie
The Government remain very concerned by the evidence of harm in the payday loan market, but we do not think that the current evidence points to a cap on the cost of credit as a solution at this time. The Bristol report on high-cost credit indicates that a cap could have unintended consequences and risks harm, such as reducing consumers’ access to credit and leading to crime, lenders imposing new charges outside the cap, and less understanding shown to customers. Therefore, we do not agree that this is right or, indeed, that a ban would be right.
Lord Elystan-Morgan
My Lords, I will raise a purely legal point. Does the Minister accept that under the Consumer Credit Act 2006 there is substantial protection—potentially, at any rate—for a debtor who would otherwise suffer injustice? Under that Act, a judge is entitled, where he considers that there are unfair provisions in the loan contract or that the lender has acted in an unconscionable way, to deprive that creditor of relief or to rewrite the contract to make it fairer. Can the Minister show the House that such matters are brought constantly to the attention of judges, particularly district judges, who deal with these matters, so that such cases of gross unfairness are properly dealt with?
Viscount Younger of Leckie
The noble Lord is right to raise the issue of continuous payment authorities. The Government have real concerns about the way in which payday lenders can access money from their customers’ bank accounts. We have been pressing the industry on further transparency, and payday lending codes commit lenders to explaining clearly what a CPA is, how it works and how to cancel a CPA.
Enterprise and Regulatory Reform Bill
Debate between Viscount Younger of Leckie and Lord Elystan-Morgan
Viscount Younger of Leckie
As I say, talks are ongoing, so it is best if I respond to noble Lords on the matter raised initially by the noble Lord, Lord Foulkes.
The noble Lord, Lord Elystan-Morgan, asked whether arbitration would be free to use for complainants. I can confirm that the charter provides that a self-regulator must provide an arbitration process that is free to use for complainants. The noble Lord also asked whether freedom of information would apply. Shortly we will debate an amendment on freedom of information, but the Government do not intend to extend the Freedom of Information Act to the regulatory body or, indeed, the recognition body.
Lord Elystan-Morgan
My Lords, the real question I raised is whether the royal prerogative in relation to charters, which is utterly sovereign, can be circumscribed in any way by any decision of Parliament. Has the noble Viscount obtained specific advice and information on that matter?
Viscount Younger of Leckie
No. The noble Lord deserves a full answer to that question. I think that the best thing would be for me to come back to him in writing.