Living Wage

Baroness Wall of New Barnet Excerpts

Wednesday 6th November 2013 Lords Chamber

[Viscount Younger of Leckie]

My noble friend has made some strong and passionate points and I agree with the gist. However, I should say that our key policy is to support the low-paid through the national minimum wage. It is set at a level that helps as many low-paid workers as possible, but without damaging their employment prospects. My right honourable friend Vince Cable has asked the Low Pay Commission to look at what economic conditions would be needed to allow the national minimum wage to rise in the future by more than current conditions allow, without having an adverse impact on jobs.

[Baroness Wall of New Barnet (Lab)]

My Lords, I am sure that the noble Viscount is aware of the benefits that the living wage have already demonstrated. He referred specifically to SMEs in his response. I advise him that many SMEs, particularly those in the engineering and technical sectors, already pay well above the minimum wage. They feel that it is the right way forward because they benefit from the commitment of their employees.

[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.