Low Pay: Resolution Foundation Report

Debate between Lord Ashton of Hyde and Lord Haskel

Tuesday 11th November 2014 Lords Chamber

[Lord Haskel]

To ask Her Majesty’s Government what is their assessment of the report by the Resolution Foundation Low Pay Britain 2014.

[Lord Ashton of Hyde (Con)]

My Lords, the Government note the report and conclusions, particularly the recognition of the economic recovery. The economy is on the road to recovery as a result of the Government’s long-term economic plan. There are now more people in work than ever before, more people able to support their families with the security of a regular wage, and we have seen the first above-inflation increase in the minimum wage since 2007.

--- Later in debate ---

[Lord Haskel]

Is he aware that in responding to this Question he has two audiences. He has this Chamber; and what he has said may satisfy noble Lords. However, does he agree that to his other audience—to the people in this report whose lives and jobs are on a downward trend, and whose lives are becoming much more difficult—his response is irrelevant? In fact, they may even say that his response is complacent. Does the Minister have any words to connect with them?

[Lord Ashton of Hyde]

I thank the noble Lord for the first part of his remarks welcoming me. I am sorry that he already thinks I am going to seem complacent. The reason we address those people who we acknowledge are in the difficult position that the report has mentioned, is that we believe that the economy is the foundation for increasing personal wealth. In fact, the Office for Budget Responsibility forecasts that real household disposable income will rise every year to the end of the forecast period 2018-19.