National Living Wage

Lord Grocott Excerpts

Monday 17th January 2022 Lords Chamber

[Lord Callanan (Con)]

The original Question was about the minimum wage. The points the noble Baroness raises are important but they are matters for the Treasury—I would be very happy to speak to Treasury officials and get her a proper answer on that.

[Lord Grocott (Lab)]

I am grateful to the Minister for reminding us that it was a Labour Government who introduced the national minimum wage. He did not remind us that it was done in the teeth of Tory opposition, and neither did he remind us that the principal argument used by the Tories at the time was that any introduction of a national minimum wage would inevitably result in a huge increase in unemployment— 2 million, I think, was the figure most frequently quoted. Will he now acknowledge at least that whoever was doing the Tory forecasting at the time had not the faintest idea what they were talking about?

[Lord Callanan (Con)]

Obviously I was not in government at the time but, looking back at the debate, a lot of independent economists were concerned about the possible impact. As I indicated in previous answers, nobody wants to see rises in unemployment. At the end of the day, low pay is better than no pay at all. But I am delighted to say that with the increases in the national minimum wage—and our record on this is second to none—we have seen the national living wage outpace the rate of inflation by over 20 percentage points since we have been in power. That is a good thing: it has not resulted in a rise in unemployment, and I think that is something we should all welcome.