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.
My Lords, does the Minister agree that the self-employed have a particular responsibility for, and indeed control over, their own earnings? One of the reasons why Britain is the best country in Europe to become self-employed in is the very high threshold for registration for VAT, which is £82,000, which is about 10 times that of the other countries in the EU. This means that someone starting a small business does not have to charge VAT until they reach a turnover of £82,000, which of course gives them a huge competitive advantage if they are selling their services to people who cannot reclaim VAT.
My Lords, my noble friend is right on that. It is so important that these small businesses have as much help as possible, and the fact that we have this high threshold for value-added tax helps them. I add that the Government are increasing the employment allowance from £2,000 to £3,000 from April 2016. This will benefit up to 590,000 employers, and as a result those businesses could employ four people full-time on the national living wage and pay no national insurance contributions.
A number of meetings have been arranged between the African Union and the EU under the Khartoum process, which the noble Lord will be aware of. There will be a further meeting later in the autumn when more of these matters will be discussed.
My Lords, now that the Prime Minister has said on 3 June that,
“we need to break the link between getting on a boat and achieving residence in Europe”,—[Official Report, Commons, 03/06/15; col. 583.]
and has called for arrangements to be made for the possibility of returning illegal immigrants to Africa, will Her Majesty’s Government start negotiations in the Security Council to get a United Nations mandate to establish in Africa—preferably somewhere in Libya—a holding area to which people can be returned and where they can be decently treated and properly assessed as to what should happen to them next?
My noble friend is quite right that people should be decently treated. From what has been happening, it is obvious that they are not being decently treated. I will pass his question on the UN Security Council to the department. As I have said, we have to cut the link in Eritrea. The Eritreans have said that they will keep their national service only for 18 months. Also, all the young men—up to 200 a day—are leaving Eritrea, so the workforce is disappearing.