Incomes and Prices

Baroness Blower Excerpts

Monday 31st October 2022 Lords Chamber

[Viscount Younger of Leckie (Con)]

I certainly take note of what my noble friend has said although I cannot particularly comment on it, because this matter falls very much within the remit of the Bank of England. As an observer, I too have noticed that there has been some slipping of energy prices; I have also noticed that mortgage rates are slightly down. But there is a long way to go, as they are very high and people are struggling very much, so I must make that point again.

[Baroness Blower (Lab)]

My Lords, does the Minister accept that an independent pay review body is not the same as collective bargaining? Does he also recognise that the poorest 10% of households pay 47.6% of their gross income in direct and indirect taxes, compared with 33.5% paid by the richest 10%? In what sense could that possibly be consistent with the Government’s alleged levelling-up agenda?

[Viscount Younger of Leckie (Con)]

The noble Baroness of course has much experience, particularly in the teaching sector, but the pay review bodies, of which there are eight, are very representative. They consider the needs of all public sector bodies and are made up of a number of representative parties, including trade unions and academics, to make the necessary decisions, so I believe that they are independent. One can have a discussion as to whether they are the same as collective bargaining, but that is where we are.