Economic Inequality

Lord Giddens Excerpts

Monday 10th February 2014 Lords Chamber

Asked by

[Lord Giddens]

To ask Her Majesty’s Government what policies they have to address economic inequalities in British society.

[Lord Newby (LD)]

My Lords, according to the latest ONS statistics, income inequality in the UK is at its lowest level since 1986. The Government are committed to ensuring that all families benefit from the return of growth to the economy and maintain that the best route out of poverty and the best way of reducing inequality is for households to move into work.

[Lord Giddens (Lab)]

My Lords, I thank the Minister for that response. However, I do not recognise it at all. Burgeoning social exclusion on the bottom; stagnant wages in the middle; runaway incomes and wealth at the very top—this is not a formula for a stable and integrated society. Surely the Government need some more radical and far-reaching policies to deal with this disturbing situation, which even the grandees at Davos are rather perturbed about.

[Lord Newby]

My Lords, one of the priorities of the Government is to ensure that work pays for everybody. This is one of the benefits that the Universal Credit will bring. This is one of the advantages of taking 2.7 million people out of income tax altogether. This is one of the reasons why my colleague, Vince Cable, has asked the Low Pay Commission to look at raising the minimum wage beyond what it might otherwise do, and this is why the Government support the living wage. Ensuring that work pays—and pays well—for people at modest levels of income is a top priority for this Government.