National Minimum Wage Debate
Full Debate: Read Full DebateDepartment: Department for Business and Trade
Lord Fox
Main Page: Lord Fox (Liberal Democrat - Life peer)Department Debates - View all Lord Fox's debates with the Department for Business and Trade
(10 months, 1 week ago)
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Lord Offord of Garvel (Con)
I thank the noble Lord for that reminder. I think all of us in this place and the other place can be very proud of what has happened over the past 25 years on the minimum wage. This wage increase will benefit 3 million workers. Remember, we have 33 million people working in the UK, out of 66 million, so those in the bottom 10% are getting a 10% increase. That has a knock-on effect for further formulae. This is a big impact. If we look at the past eight years, since it came in in 2015, the national living wage has gone up by 60% versus inflation at 30%, so there has been a real increase in wages for those at the lower end of the wage scale.
Lord Fox (LD)
My Lords, I think the noble Lord, Lord Bird, would agree that there are too many working people who have to rely on the minimum wage in this country and that those at the bottom of the wage cycle are the ones who suffer most when there is low growth. A key statistic, if the Minister wants to trade statistics, is GDP per capita, which is falling. Our productivity is falling because there is insufficient investment in skills and capital machinery. The reason there is insufficient investment is because businesses do not have stability or confidence going forward. Does the Minister agree that this Government do not have a plan and are not providing the facility that can deliver the growth that will help the people the noble Lord, Lord Bird, is talking about?
Lord Offord of Garvel (Con)
I thank the noble Lord for that. We have record levels of employment in this country, with 33 million out of 66 million people working. Average public sector pay is £19 an hour and in the private sector it is £16. We are now taking the minimum wage up to £11.44. The noble Lord is quite right to indicate that if we want to ask businesses to invest more money, perhaps we should be asking them to invest in more productivity per employee rather than just more wage per employee, and perhaps more inclusion and diversity, along the lines of John Lewis and Timpson.