Living Wage

Debate between Baroness Humphreys and Viscount Younger of Leckie

Monday 9th June 2014 Lords Chamber

[Viscount Younger of Leckie]

We know that some households, including those with children, are seeing the amount that they spend on food increase but there is much that the Government are doing to resolve this. The Government provide a number of schemes to help the most vulnerable to afford and have access to nutritious foods, such as the Healthy Start scheme and free school meals. However, we also recognise the extremely valuable work of civil society in supporting local communities. There has always been a tradition in this country of voluntary and charity organisations providing support to people, as the noble Baroness will know, in addition to the safety nets that the Government provide.

[Baroness Humphreys (LD)]

My Lords, many workers on minimum wage continue to be trapped on low pay. The Resolution Foundation recently suggested that some sectors of the economy and businesses in London could probably well afford to pay more than the minimum wage, and recommended that the Business Secretary ask the Low Pay Commission to publish an analysis of the situation. Do the Government endorse the foundation’s recommendation?

[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.

National Minimum Wage

Debate between Baroness Humphreys and Viscount Younger of Leckie

Tuesday 1st April 2014 Lords Chamber

[Viscount Younger of Leckie]

The noble Lord makes a very good point about the living wage. It is good to note that 80% of all employers pay above the living wage, but I am the first to say that there is much more to do. The Government support employers who choose to pay the living wage. However, decisions on what wages to set are for employers and workers to agree, as long as employers pay at least the national minimum wage.

[Baroness Humphreys (LD)]

My Lords, in too many instances, the minimum wage has become the maximum wage that employers are prepared to pay, leaving many workers trapped on low pay. As the economic recovery begins, what encouragement and support can the Government give to employers, particularly small businesses, to redress the balance and ensure that their employees can also reap the benefits of our improving economic situation?

[Viscount Younger of Leckie]

My noble friend may be alluding to the recent report from Professor Sir George Bain on the future of the national minimum wage. We are considering all the recommendations and their implications in advance of the 2015 LPC agreement. I agree with George Bain’s finding that the national minimum wage has been a huge success in improving low pay and reducing exploitation in the UK labour market. The Government, however, think that the simplicity of the national minimum wage and the independence of the LPC remain key to its success.