Oral Answers to Questions

Julie Hilling Excerpts

Thursday 20th November 2014 Commons Chamber

[Ann McKechin (Glasgow North) (Lab)]

16. What steps the Government are taking to (a) enforce payment of the minimum wage and (b) encourage firms to pay the living wage.

[Julie Hilling (Bolton West) (Lab)]

20. What steps the Government are taking to (a) enforce payment of the minimum wage and (b) encourage firms to pay the living wage.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

The Government are taking tough action on employers that break minimum wage law. We have made it simpler to name and shame employers that do not pay the national minimum wage properly, and have increased the financial penalty that employers pay for breaking the law. The Government will always support and encourage businesses to pay higher than the national minimum wage, where they can.

--- Later in debate ---

[Mr Speaker]

Wow! It is always useful to have a bit of information.

[Julie Hilling (Bolton West) (Lab)]

When many large employers are making vast profits but charging the taxpayer by paying their employees the minimum wage, and when families are hit by the cost of living crisis, why will the Minister not follow Labour’s lead and our plans to incentivise employers to pay a living wage through “make work pay” contracts?

[Jo Swinson]

I do not think the proposals put forward by the Opposition stack up. Providing only a small incentive for only a 12-month period is unlikely to change behaviour, but it is important to encourage employers to pay more than the minimum wage where they can. It is important that we are cutting income tax by £800 for low and middle earners so that they can keep more of their hard-earned cash. That is why this Government will continue to build the stronger economy we need so that people can properly prosper.