Living Wage

Lord Kennedy of Southwark Excerpts

Thursday 8th November 2012 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what progress they are making on implementing the living wage.

[Lord Gardiner of Kimble]

My Lords, the living wage is a voluntary minimum level of pay above the national minimum wage that companies and other bodies can choose to pay their employees. The Government back the idea of a living wage, and we encourage businesses, where possible, to take it up. However, we have no plans to require employers to pay the living wage.

[Lord Kennedy of Southwark]

My Lords, work should be the surest way out of poverty. Will the noble Lord join me in congratulating those employers who pay the living wage, as well as the Living Wage Foundation, Mr Ed Miliband and the Mayor of London, Mr Boris Johnson, on the work they are doing to support it? When will the Prime Minister catch up and do something about this issue?

[Lord Gardiner of Kimble]

My Lords, the Government have directed their focus entirely in terms of low pay on taking action to help through the tax system. Indeed, they raised the income tax allowance to take 2 million of the lowest-paid people out of tax altogether. From next April someone on the minimum wage working full time will see their income tax bill cut in half, and if they work 28 hours a week they will no longer pay income tax. That is a direct result of what this Government are doing to assist the low paid.