National Minimum Wage

Debate between Angus Brendan MacNeil and Chris Williamson

Wednesday 15th January 2014 Commons Chamber

[Chris Williamson (Derby North) (Lab)]

Last Wednesday was fat cat Wednesday—the day by which top executives in FTSE 100 companies had, two days after returning to work from the Christmas holidays, earned more money than the average worker, let alone someone on the minimum wage, will earn in the entire year.

Like my hon. Friend the Member for Vale of Clwyd (Chris Ruane), I undertook a job centre survey in 1996—in Derby—and I was absolutely shocked by the number of jobs on offer at £1 an hour or less. It had a hugely civilising effect on our country when the Labour Government, who were elected in 1997, introduced the national minimum wage and took millions of people up the income scale as a consequence.

We know that the national minimum wage was opposed by the Conservatives in this place and elsewhere in the country, and that the Liberal Democrats could not really make up their mind: some were in favour and some against. True to form, since returning to power, they have frozen the amount of resources available for its enforcement. That is utterly disgraceful, because the consequence of the freeze is to make it that much more difficult to bring to book exploitative employers who pay below the minimum wage.

I have to say that the Secretary of State for Business, Innovation and Skills was all over the place when he addressed the House. He said that the political process should not interfere with the Low Pay Commission, but he went on to say that he had interfered on some occasions, and let us remember that it was a political decision to bring in the national minimum wage in the first place. Given the Government’s parsimony in relation to ensuring that the necessary resources are available to the enforcement body, I want the Secretary of State to make a political intervention by conferring a formal third-party role on the trade union movement. Trade unions could help to monitor and enforce the minimum wage by ensuring, when they complain about non-compliance, that such complaints are investigated by HMRC as a matter of course, which would make a big impact.

[Mr MacNeil]

Will the hon. Gentleman give way?

[Chris Williamson]

I will not take any interventions, if the hon. Gentleman does not mind, because I know that some of my hon. Friends want to speak and they may run out of time.

We certainly need better enforcement. It annoys me that the Conservative party is quite happy to use taxpayers’ money to subsidise the well-heeled in our society. Not enforcing the minimum wage and, indeed, not supporting the living wage is a case in point, because taxpayers’ money goes to subsidise low pay in our country. We therefore need not just support for the living wage, but greater penalties to ensure that the national minimum wage is enforced. It is welcome that penalties are being increased, but that is still not enough; more needs to be done.

Let us be clear that, as my hon. Friends have already said, when people on low incomes have more money in their pockets, they spend that money, which creates economic activity and growth, and helps to sustain and create jobs in other industries and businesses. In my view, that is really important.

Having listened to the Conservatives today and knowing their record from history, it seems to me that one thing is pretty clear: we cannot trust them—or, indeed, the Liberal Democrats—with the national minimum wage. It will take a Labour Government coming to power in 2015 to ensure that the national minimum wage is enforced, that appropriate penalties are imposed on recalcitrant employers and that we can move rapidly towards a living wage to bring all citizens up to a decent standard of living. We owe that to the people of this country, but it will take a Labour Government to achieve it.