Living Wage

Baroness Royall of Blaisdon Excerpts

Thursday 5th November 2015 Lords Chamber

Asked by

[Baroness Royall of Blaisdon]

To ask Her Majesty’s Government, in the light of the recent report by KPMG on the number of people not earning the Living Wage, what action they will take to ensure an increase in the proportion of workers earning the Living Wage.

[The Earl of Courtown (Con)]

My Lords, from April 2016, we will be introducing the national living wage for workers aged 25 and over. At £7.20 per hour, it will mean that a full-time worker working a 35 hour week will earn £910 per year more than at the current national minimum wage. The Government encourage all employers to pay above the national minimum wage, where they can afford to do so.

[Baroness Royall of Blaisdon (Lab)]

My Lords, KPMG in its survey was talking about the real living wage, which is £9.40 per hour in London and which enables employees to live with dignity and receive fewer tax credits. Why does the Minister think that 1.3 million more women than men are paid less than the living wage? Why is it that a young woman in her 20s is going to be 50% more likely to earn less than the living wage next year than the workforce in general? It is great that more than 700 employers now pay the London living wage, but the retail industry is notably recalcitrant. In September—

[Noble Lords]

Too long!

[Baroness Royall of Blaisdon]

It might be long, but it is important. In September, I co-signed a letter to Sir Philip Green with Susan Benavides, a cleaner at Topshop who is struggling on the minimum wage and whose life would be transformed by the London living wage. What can the Government do to aid people like her?

[The Earl of Courtown]

My Lords, the noble Baroness is quite right as far as the living wage and wages for women are concerned, and the sooner that we have more parity in that, the better. She also mentioned the retail industry. I should point out that from next April, when the national living wage will be paid, Lidl, Starbucks, Costa, Morrisons, Amazon and Mitie have all committed to pay the national living wage.