Oral Answers to Questions

Ian Murray Excerpts

Wednesday 26th November 2014 Commons Chamber

[Jim McGovern (Dundee West) (Lab)]

3. What steps he is taking to encourage firms in Scotland to pay the living wage.

[Ian Murray (Edinburgh South) (Lab)]

9. What steps he is taking to encourage firms in Scotland to pay the living wage.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

The Government support businesses that choose to pay the living wage, where it is affordable and does not cost jobs. Decisions on what wages to set, above the national minimum wage, are for employers and workers. However, we encourage employers to pay the living wage where possible.

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[David Mundell]

On this occasion, I share the hon. Gentleman’s view that where Celtic football club has led, others should follow. We want to encourage all employers who are in a position to do so to pay the living wage.

[Ian Murray]

Pay is one of the most important tools in helping to fight poverty, but it also makes perfect business sense. The Government appear to have absolutely no plans to encourage employers to pay the living wage. The Minister will also be aware that the Scottish National party Government have just refused to put the living wage into Government contracts. Should not the Government be supporting Labour’s “make work pay” contracts, which would share tax benefits with employers, thereby encouraging them to pay the living wage?

[David Mundell]

I completely refute the hon. Gentleman’s suggestion that the Government are not encouraging employers to pay the minimum wage where they are in a position to do so and it does not cost jobs. This Government’s commitment to those on low pay is clear from the way in which we have raised the personal allowance. His party’s position is far from clear—Labour claimed that it would reduce the national minimum wage to a level that is actually lower than it is projected to be in 2020.

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[The Prime Minister]

I will certainly look at the proposal. After all, we backed the Ebola fundraising that was very effective in that excellent England-Scotland international, which raised a serious amount of money for Ebola, and we also acted on the Band Aid single, so we will have a close look at what the hon. Gentleman says.

[Ian Murray (Edinburgh South) (Lab)]

Q2. A recent report by the respected charity, the Joseph Rowntree Foundation, found that the Government’s unfair tax and benefit changes had resulted in the poorest half of households losing out, while the top 1% had seen their incomes rocket. That makes me feel extremely angry. What does it make the Prime Minister feel?

[The Prime Minister]

I have studied the report carefully, and it says that the rise in adult poverty outlined by the report occurred on Labour’s watch. Since the election, we have seen 600,000 fewer people in relative poverty, 670,000 fewer workless households, and 300,000 fewer children in poverty. The other point about the report—I am sure the House will want to hear this—is that it covers only the income figures up to April 2013. It says:

“since the middle of last year, there have been huge increases in employment, which will surely impact on incomes and risks of poverty.”

That is absolutely right.