Oral Answers to Questions

Kerry McCarthy Excerpts

Monday 10th October 2016 Commons Chamber

The Secretary of State was asked—

[Kerry McCarthy (Bristol East) (Lab)]

1. If she will offer students places on the board of the Office for Students.

[The Secretary of State for Education (Justine Greening)]

I welcome the shadow Ministers to their roles and also, more importantly, welcome my new ministerial colleagues to theirs for our first oral questions session.

We have made it clear that the Office for Students must have student representation, and we will take every opportunity to embed student engagement in the culture and structure of the new organisation.

[Kerry McCarthy]

I thank the Secretary of State for confirming that. During the summer, I met students from the University of Bristol and the University of the West of England, who are very concerned about rising tuition fees, the scrapping of maintenance grants and, above all, the quality of teaching. Can she assure them that they will be listened to when they express concerns about those issues in connection with the Higher Education and Research Bill?

[Justine Greening]

In part, the Bill reflects our wish to secure value for money for students, which we are building into law for the first time. Our updating of the higher education regulatory framework is long overdue, and I am delighted that we are taking the opportunity to put the interests of students at the heart of it.

EBacc: Expressive Arts Subjects

Kerry McCarthy Excerpts

Monday 4th July 2016 Westminster Hall

[Fiona Mactaggart]

My point is not that young people should study these creative subjects instead of the EBacc, but that they should be part of the mandatory experience of young people, which is the case at Eton. Eton has brilliant drama, music and art education. The facilities are extraordinarily wonderful.

[Kerry McCarthy (Bristol East) (Lab)]

Is it not likely that the sort of people who go to Eton and other public schools have the sort of cultural background whereby they get taken to the theatre, they have books at home and they are exposed to classical music? That is precisely the point; that is why it is so much more important to teach these subjects in the sort of schools that I have in my constituency, where people do not have that advantage.

[Fiona Mactaggart]

Absolutely. Actually, the previous theatre teacher at Eton said:

“For me the importance the work has here in the boys’ lives is the reason they do such good work afterwards. That importance arises from many things. One is that we don’t do drama just for its educational value. We do a play as a work of art, to be explored at its fullest.”

It is rare for children to have that experience of creating, of making a work of art. They can do it if they learn these expressive subjects. The problem is that this Government view them as an optional add-on. When I asked the Prime Minister about this issue and referred to his experience at Eton, he said:

“It is essential that we get more children learning the basic subjects and getting the basic qualifications. It is then more possible to put in place the arts, the dance and the drama that I want my children to enjoy when they go to their schools.”—[Official Report, 4 November 2015; Vol. 601, c. 962.]

I do not see it as a question of the basics and then these frilly add-ons. In my judgment, these subjects are as basic as every other subject in the EBacc. That is why so many people have signed this petition. It is not saying, “Get rid of the EBacc.” It is saying, “Include expressive subjects in every child’s education, because if you fail to do that, you are letting them down.”

--- Later in debate ---

[Kerry McCarthy (Bristol East) (Lab)]

I think this is the first time that I have spoken under your chairmanship, Ms Buck. It is a pleasure to do so.

There have been some excellent speeches so far, and I agree with everyone who has made the case for the importance of arts education and for the need for us to continue to value that education. The narrowing of focus about what constitutes a valid qualification concerns me across the board. Obviously, we are here today to discuss arts education, but we have also seen, for example, life and environmental sciences being scrapped at GCSE and A-level. That seems nonsensical to me, because the best way of getting children interested in science is to link it to their natural environment, to issues such as climate change, and to what they see all around them.

As we have heard, participation in creative subjects and gaining a qualification in them are immensely rewarding for pupils, particularly those pupils who struggle to excel academically. I was talking to a number of senior educationalists at the weekend; we are fortunate in Bristol that several of our new councillors have a background in education in cities such as Bristol and Leicester, which have high levels of deprivation and much ethnic diversity. They could not stress enough how important arts subjects are for some pupils who will never be very good at English, maths or other traditional subjects; the arts get those pupils through the doors of schools. Headteachers have said that to me as well.

[Mr Christopher Chope in the Chair]

The fact is that all the secondary schools in my constituency were rebuilt under the last Labour Government, through the Building Schools for the Future programme, so they have music studios, art rooms and sprung dancefloors that the children can use not only during school hours but after school as well. The arts get children through the door of the school, and if that means they then enjoy the school experience, feel more confident and make friends with other pupils, they are much more likely to thrive in the academic subjects as well.

[Catherine McKinnell]

My hon. Friend makes a valid point. It reminds me of when I attended a local school’s opening of its sport centre to the community. Alan Shearer, who was a former pupil, spoke passionately about the difference that having sport—football in particular—available at school made to him, and how that was the only reason he went to school. He got his maths, and he got his English, but it was a sport that brought him through the door. The arts too can be a driver for young people to come to school and enjoy the experience.

[Kerry McCarthy]

Absolutely, and that is certainly the case with sports in Bristol’s schools as well. Some Conservative Members for neighbouring constituencies are keen on the idea that we take education more seriously, that we should all learn Latin and history—a few years ago one of them wrote about “joke GCSEs”. In a city like Bristol, where 40% of the jobs are in the creative sector, it is a running joke that if you do a Mickey Mouse degree you end up with a job at Aardman and win an Oscar. That is certainly not something we should sneer at.

We also have the BBC’s natural history unit, which combines learning about natural history and the life and environmental sciences with learning the sort of skills that could lead to someone being one of the amazing cameramen who manage to film things that no one has ever caught on film before. Studying these subjects is not something that people do just for their self-fulfilment, although it is important on that front; it is very much part of getting a job and thriving when they leave school.

MPs have been sent a useful briefing by an organisation called MillionPlus for Thursday’s Backbench Business debate on creative industries and the economy—we seem to have several debates about the creative sector this week. The briefing focuses on the role of universities in supporting the creative sector, pointing out, as has been said, that the sector is worth £84.1 billion to the UK economy and is one of its fastest growing areas, providing 2.8 million jobs. MillionPlus says that 70% of people in creative occupations are university educated, but that numbers

“studying many creative subjects at school and university are falling and the talent pool will inevitably decrease”.

It points to the potential sidelining of creative subjects in schools and expresses concern about the narrative that has built up that STEM subjects are somehow far more worthwhile than creative ones. Of course STEM subjects are important, of course our future economic growth depends on people wanting to go into those sectors as well, but one set of subjects should not exclude the other.

MillionPlus’s concern is that with the Department for Education promoting certain “facilitating” subjects that focus on STEM and not on creative courses at GCSE and A-level, as well as the introduction in 2016-17 of the new performance measures based on the eight key subjects, there is a risk that more and more schools will design their curriculums in a way that marginalises creative subjects, as many speakers have already mentioned. We cannot really blame schools if they feel compelled to go down that path. If they are going to be judged on key areas, they do not want to risk being left behind when compared with other schools.

I asked people earlier today on social media if they had any comments on the matter, and one of my constituents got in touch to say that her son was forced to drop all but one arts subject for year 10 because of the league tables for EBacc. She felt that that had very much held him back.

I want to mention two specific areas—I do not want to go over the ground that has already been covered. On music in schools, there is a lot of anecdotal evidence that suggests that in some areas fewer than 20% of schools offer music beyond key stage 3 and fewer than 5% offer it at sixth form. There was a meeting of all-party parliamentary groups last week, which I think the hon. Member for Somerton and Frome (David Warburton), a relatively near neighbour of mine, attended. I could not attend, but my researcher went along. The case was cited at that meeting of a west London borough where out of 15 state-funded schools with secondary age pupils all but one was rated good or outstanding but only six offered music post-key stage 3 and only two offered it post-key stage 4. Just last week, the music hub there learned that two of the secondary schools, both of which are academies, will offer no music at all from year 7, which is a sad state of affairs.

A representative from the music hub said that the impact of the EBacc changes is that music teachers are being used as flexible cover or are leaving and not being replaced, and that the result will be that music drops out of schools completely. That is also something that people involved in music education in Bristol have said to me—that with that casualisation of the profession we will end up losing the skills pool, because people simply cannot make a living from being brought in for the occasional lesson. The music hub representative at the meeting said that that means

“no music for prize day, school fairs, community events; no school musicals/Christmas concerts. What a joyless experience for our pupils, particularly when we remember that for many music is the only thing that will engage them and develop positive attitudes towards learning.”

Is it not rather disingenuous of the Government to say that music is a compulsory subject for five to 14-year-olds when academies do not have to follow the curriculum? How can the Minister provide real reassurance that music will not drop out of some schools entirely? I look forward to hearing from him on that point.

My last point is about social diversity in the arts, which we have already touched on. The actor Ralf Little, of “The Royle Family” fame, was reported in the papers today as saying that Caroline Aherne, who died at the weekend, showed

“that working-class people can be on TV, being ourselves”,

but that her death

“is a reminder how much she and her writing were, and still are, the exception.”

Julie Walters has said previously that she would not have a chance of making it as a working-class actor if she was starting out today, and there is an ongoing debate about why so many of the up-and-coming names on our stage and screen seem to have been educated at public schools. Last year, 92.1% of jobs in the creative industries were being done by people in the more advantaged socioeconomic groups, a figure that is up 20% since 2011. The well known actor James McAvoy has warned:

“I do care about a government that doesn’t prioritise arts in education. It is one of the first things that if you take it away, it’s a signal that the government doesn’t care about upward mobility any more. Art is one the first things you take away from society if you want to keep them down.”

Given how difficult it is for anyone from a normal background to break into acting these days, is the Minister concerned about the impact the changes might have on social mobility? Factors to consider are the enormous fees for drama and art schools, the need for financial support during the phase when someone is not sure whether they will break through and become a professional, the prevalence of unpaid internship, the effects of arts cuts on outreach programmes, and the increasing prevalence of low pay and no pay in the entertainment industries. I know that the previous Secretary of State for Culture, Media and Sport was very concerned about the need to increase diversity in the arts—I went with a delegation from Equity to meet him when I was chair of the all-party Performers’ Alliance group. It seems, however, that all the work he was looking to do on increasing diversity, which I hope his successor is now taking up, could be jeopardised if we do not get it right at school level.

Oral Answers to Questions

Kerry McCarthy Excerpts

Monday 2nd March 2015 Commons Chamber

[Mr Laws]

I know that my hon. Friend is a champion of the schools in his constituency, including the two that he mentions. In addition to the priority school building programme phase 2 funding, we recently announced £4.2 billion of funding for the improvement and maintenance of school buildings over the next three years, and his local authority is able to draw down on those moneys allocated to its area for the schools that he mentions. On the ranking of schools, we have no plans to publish a ranking list of surveyed schools, which could be misleading without taking into account other information supplied by schools and local authorities with their PSBP 2 bids.

[Kerry McCarthy (Bristol East) (Lab)]

5. What recent discussions she has had with teachers associations and unions on teacher work loads.

[The Minister for Schools (Mr David Laws)]

The Secretary of State and I engaged with teachers associations and unions in the discussions about teacher work loads, most recently through the work load challenge. I welcome their contribution to the debate, including through the programme of talks at the Department for Education.

[Kerry McCarthy]

The Government’s own figures show that the average primary teacher is working 60 hours a week. Teachers in Bristol tell me that their work load is at an unsustainable level and that the accountability system in particular has reached absurd levels and demonstrates a profound lack of trust in teachers. Teachers are too often unsung heroes, under-appreciated and overworked. When is the Minister going to let them just get on and do their job?

[Mr Laws]

The work load burden on teachers, which has been present for some time in this country, including under the Labour Government, is precisely the reason that we established the work load challenge. The hon. Lady will have seen the comprehensive and detailed plan that we published, which we believe will help over time to drive down the unnecessary work load of teachers.

Oral Answers to Questions

Kerry McCarthy Excerpts

Thursday 26th February 2015 Commons Chamber

[Mr Vaizey]

On Tuesday night I spoke to the Hounslow chamber of commerce at the headquarters of iBurbia in Chiswick. The managing director there rushed up to me to say that he had just got superfast broadband by using one of our super-connected voucher schemes. He also said to me, utterly unprompted, that he thought my hon. Friend was one of the hardest-working people he had ever met. He told the entire room, full of hundreds of business people, that fact.

[Kerry McCarthy (Bristol East) (Lab)]

Obviously London is an important creative hub in terms of its contribution to the UK economy, but other cities such as Bristol can make a real contribution too. What assessment has the Minister made of programmes like Plus Tate, in which the Tate is working with other galleries such as the Arnolfini in Bristol, that enable the London institutions to help places in other cities?

[Mr Vaizey]

Plus Tate is a fantastic programme that belies the statistics saying that London has more money spent on the arts than the rest of the country. The money that goes to the Tate helps to support 24 contemporary art museums around the country, and the scheme is very successful. It is worth bearing that in mind.

--- Later in debate ---

[Sajid Javid]

First, I encourage my hon. Friend’s spouse to ensure that the family filters are turned on in the Afriyie household. His point about the greater use of satellite technology throughout the UK is well made. That is something that we are actively looking at.

[Kerry McCarthy (Bristol East) (Lab)]

T2. The Music Venue Trust will launch its report on the challenges faced by small and medium venues at an event that I am hosting in Parliament on 9 March. What value does the Secretary of State place on the importance of the live music circuit to the UK’s world-dominating music industry? If he is not able to drop in on 9 March, may I send him a copy of the report, so that he can hear the concerns about the challenges facing venues?

[Sajid Javid]

The hon. Lady makes an important point. I will see whether I or the Minister for Culture and the Digital Economy can drop in on 9 March. She has campaigned actively on behalf of venues in her constituency, some of which I know well. I went to The Fleece during my youth in Bristol. She is a great champion for such venues and I hope that we can work together on these issues.

Birmingham Schools

Kerry McCarthy Excerpts

Thursday 29th January 2015 Commons Chamber

[Nicky Morgan]

We of course have a very strong inspection system through Ofsted. In my experience as Secretary of State for Education over the course of the past few months, parents find many ways in which to complain, whether it be through Ofsted, the EFA or directly to me as Secretary of State or via the Department for Education. There are mechanisms to enable parents to raise complaints about their children’s schools, but of course they often start with the local school itself.

[Kerry McCarthy (Bristol East) (Lab)]

The matters raised by the Education Secretary today, particularly the work she mentioned about her Department’s counter-extremism group, overlap considerably with the issues covered in the Home Office consultation on the Prevent duty, which closes tomorrow. I know that some groups in my constituency are keen to have some input. How can they have input into the work of the counter-extremism group in the right hon. Lady’s Department as well as influence the Prevent duty?

[Nicky Morgan]

I welcome all and any engagement that any groups want with the Prevent duty. I recommend that they contact the Department directly. They can come straight through to my office, and we would make sure that their thoughts were shared with the appropriate officials either in my Department or the Home Office.

Oral Answers to Questions

Kerry McCarthy Excerpts

Monday 19th January 2015 Commons Chamber

[Nicky Morgan]

Perhaps the Secretary of State and I should show true character, resilience and grit by sitting in the same room and listening to what I am sure will be a very interesting presentation.

[Kerry McCarthy (Bristol East) (Lab)]

Just before Christmas, the Department announced plans to downgrade highly popular skills-based qualifications on developing personal effectiveness and to use section 96 powers to revoke approval for such qualifications. As ASDAN, based in my constituency, told me on Friday, it is difficult to imagine more contradictory policy making. Those qualifications were aimed exactly at what the Secretary of State is talking about, so why is she planning to downgrade them?

Lords Spiritual (Women) Bill

Kerry McCarthy Excerpts

Monday 19th January 2015 Commons Chamber

[Mr Gyimah]

There are no quotas and there is no target for 50:50 representation. The intention of the Bill is to enable the Church to fast-track women bishops into the House of Lords. The system, as it currently operates, is based on length of service. If we allow it to operate, then even in 10 years’ time it is theoretically possible that we will not have any women bishops at all. The Bill will allow the Church to reflect on the number of women bishops represented in the House of Lords, but there is no target. This is not about 50:50, but about being able to reflect the fact that women bishops, appointed on merit, can serve in the House of Lords and not be limited by the rules on length of service.

[Kerry McCarthy (Bristol East) (Lab)]

Why is there a need for a sunset clause? I do not understand why we feel that everything will have been solved in 10 years. Would it not be better to leave it open-ended and repeal the legislation in 10 years’ time if we feel that the situation has been dealt with? I would hope that in 10 years’ time we will have moved to a democratically elected House of Lords.

[Mr Gyimah]

The 10 years is because the Church believes that that will be enough time to ensure that the Bishops’ Bench better reflects the gender diversity in the Church. At the end of 10 years, there is nothing to stop the Government of the time asking for the Bill to be extended. We are responding to the request of the Church. Whether it is 10, 20 or 30 years, it is down to the Church. Women bishops will end up serving in the Lords based on how fast they are appointed as bishops. The key driver is not the length of the sunset clause per se, but how speedily the Church appoints women to be bishops.

Oral Answers to Questions

Kerry McCarthy Excerpts

Thursday 15th January 2015 Commons Chamber

[Sajid Javid]

I referred earlier to a report published this week, which shows strong growth in the creative industries throughout the UK in every region, including Scotland. I encourage the hon. Gentleman to take a look at it. If he has any fresh ideas that he thinks we should look at, I would be happy to speak to him.

[Kerry McCarthy (Bristol East) (Lab)]

3. What discussions he has had with the Chancellor of the Exchequer on the effect on musicians and other creative professionals of EU proposals to change the way VAT is charged on digital services.

[The Minister for Culture and the Digital Economy (Mr Edward Vaizey)]

The changes relate to the announcement in the 2013 Budget and came into effect on 1 January 2015. Her Majesty’s Revenue and Customs established an external working group to consider their effect on small and medium-sized businesses. The Treasury and HMRC are actively engaging with it.

[Kerry McCarthy]

I thank the Minister for that response and for agreeing to reinstate the question after his officials tried to transfer it to the Treasury. That was very kind of him. As he will know, musicians are very concerned that they will end up having to fill out quarterly VAT returns for very small sources of income. If they sell their music through iTunes or Bandcamp, they will perhaps do the administration for them, but it is a real issue if musicians have to handle it themselves. I urge the Minister to take part in those discussions with the Treasury and ensure that the voices of musicians and other people in the creative sector are heard.

[Mr Vaizey]

I would never dodge a question from the hon. Lady, particularly as she represents the constituency of Bristol East, where I stood famously in the 1997 election and turned a 5,000 Labour majority into a 17,000 Labour majority. The changes will protect and increase revenue. The hon. Lady is a great champion for the music industry. I take on board her point and I will certainly engage with HMRC.

--- Later in debate ---

[Sajid Javid]

My hon. Friend has been working very hard on this issue, and I commend him for the work he has done on behalf of his constituents and for bringing this matter to my attention again and again. My Department is working closely with the Department for Communities and Local Government, Cumbria county council and BT to ensure that the problem is resolved. I can also tell him that, following initial discussions, I am confident that the project can be fully delivered to give a great result for residents and businesses in Cumbria.

[Kerry McCarthy (Bristol East) (Lab)]

Channel 4 has just launched its 360° charter, which is making a real commitment to improving diversity, to the extent that executives will lose their bonuses if they do not meet the targets. What is the Secretary of State doing to ensure that other companies follow suit?

[Sajid Javid]

The hon. Lady rightly raises a very important point. My hon. Friend the Minister for Culture and the Digital Economy was at that launch. I have spoken a number of times about seeing more diversity in the media. For example, I talked about it just last month on Radio 4, mentioning both the work that Channel 4 is doing, which is a huge improvement on the past, and that done by the BBC, Sky and others. More can always be done, and if the hon. Lady also has some ideas, I would be happy to talk to her.

--- Later in debate ---

[Mr Harper]

My hon. Friend raised a similar question at the previous Question Time and I put in the Library information on the amount of money the Government have made available to each local authority in the country compared with what they are spending. We do not have a list broken down by local authority of every single person affected by the removal of the spare room subsidy and their level of disability, so I cannot give my hon. Friend the exact information he requires, but I think I have done the best that I can.

[Kerry McCarthy (Bristol East) (Lab)]

7. What steps her Department is taking to reduce inequality arising from socio-economic background.

[The Parliamentary Under-Secretary of State for Women and Equalities (Jo Swinson)]

The Government are committed to improving social mobility. That is why we have extended free early education to disadvantaged two-year-olds, introduced a £2.5 billion a year investment in the pupil premium, delivered 2 million apprenticeship starts within this Parliament and have more than 180 major employers signed up to the social mobility business compact to inspire young people and improve access to employment opportunities.

[Kerry McCarthy]

Bristol’s fairness commission reported last year and described Bristol as a “tale of two cities,” with some areas facing “persistent deprivation.” When the Government entered power, they refused to implement clause 1 of the Equality Act 2010, the socio-economic duty, which would have placed a duty on all public bodies to have awareness of the effect of economic inequality on their policies. Will the Government reconsider that, because it is an issue that they have completely overlooked?

Consumer Rights Bill

Kerry McCarthy Excerpts

Monday 12th January 2015 Commons Chamber

I was a touch upset that—probably because I had said that I accepted the cookies, or whatever—I was pushed on to a website owned by the company from which I was going to buy a ticket for £68 and informed that a ticket for the same concert would now cost me £90-odd. It was really difficult to get back to the first website. For me, as for most Members of Parliament, time was of the essence and I needed to move on. I still have not bought the ticket, but I will try again. I found it incredible that, without doing anything, I ended up on a secondary ticketing site on which the ticket prices started at £90-odd. That was the price per ticket if I was buying two; a single ticket was more than £100.

[Kerry McCarthy (Bristol East) (Lab)]

I had exactly the same experience, albeit not with Foo Fighters. I was trying to get tickets for the Jesus and Mary Chain recently, and there seemed to be a lot of sites advertising the tickets as being available. Those sites lure us in, but eventually we get transferred to other sites. By that time, we have wasted a huge amount of time and end up buying the more expensive tickets. Sometimes we try to hunt for the original tickets, but I suspect that that offer no longer exists by that stage.

[John Robertson]

My hon. Friend is absolutely right.

This is not a free market; it is what I call a con market. I believe in a fair market. I believe that people should be treated fairly and given a chance to buy something at the advertised price. If 100,000 people want to go to a concert and they get to the tickets before I do, that is fine, as long as there are really 100,000 people. I do not expect the machines that the hon. Member for Hove mentioned to buy up all those tickets in a matter of seconds so that I cannot get one. That is not a free market, and it is certainly not a fair one.

The previous Labour Government, with whom I had lots of arguments, could not quite see this my way. I hope that the Under-Secretary of State for Business, Innovation and Skills, the hon. Member for East Dunbartonshire (Jo Swinson), will listen to these points, because she now has a chance to do something that my Government never did—put the situation right. Things are getting worse and as technology becomes more advanced, people use it for the wrong ends. They used it to prevent my kids from getting those Take That tickets all those years ago—my kids are still looking for those tickets, even though they are parents themselves now—and they are preventing me from getting the tickets I want.

We just want to be treated fairly. I do not mind paying the going rate of £68 or whatever, but I do mind someone buying up 100,000 tickets at £68 each and then selling them for £100 each. That is not right, and it should be against the law—it is taking ticket touting to an extreme. I am not talking about the happy chappie who sells tickets for a game of football before the match, although that used to upset me as well. We cannot allow people to do this on a large scale.

We can allow someone who has bought a ticket to pass it on to a family member or a friend, and I do not have a problem with them making a profit on it, provided it is not too much. However, I do have a problem with the guy with £500 getting ripped off by the hon. Member for Shipley (Philip Davies) with his Lord’s ticket. Why anybody would want to pay that kind of money to watch a game of cricket I do not know! Having said that, if someone really wanted to see the event, I can understand them paying it, but I do not understand why some people should be able to corner the market and then resell tickets to others at a vast profit. That undermines our music industry. At the end of the day, the issue comes back to the people who are trying to give us a service and the benefit of their life’s work.

Oral Answers to Questions

Kerry McCarthy Excerpts

Thursday 8th January 2015 Commons Chamber

The Secretary of State was asked—

[Kerry McCarthy (Bristol East) (Lab)]

1. What steps the Government are taking to increase the value of the minimum wage and encourage firms to pay the living wage.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

On our return to Business questions after the break, may I wish you, Mr Speaker, and all Members a happy new year? I am sure that the thoughts of everybody in the House this morning are with France and, in particular, with the relatives and friends of those who were killed and injured in the appalling terrorist atrocity yesterday.

Last year, the Government announced the first above inflation increase in the national minimum wage since the 2008 banking crisis, benefiting more than 1 million workers. Since 1 October 2014, full-time minimum wage workers have seen an annual cash increase of £355 in their pay packets, and we expect real-terms increases to continue as the economy recovers. We support employers paying the living wage where it is affordable and not at the expense of jobs.

[Kerry McCarthy]

I thank the Secretary of State for that response. He will know that for every £1 that employers pay above the minimum wage to lift workers to the living wage, the Treasury reaps 49p in reduced benefits and increased tax revenues. Why will his Department not consider using that increased revenue to incentivise businesses to pay the living wage for the first 12 months, as Labour is proposing with its make work pay contracts?

[Vince Cable]

It is precisely because of that revenue wedge that the Government have invested so much resource in lifting the threshold so that low-paid workers are not caught in taxation. That has substantially alleviated the pressure on the living standards of low-paid workers.