Living Wage

Lord Kinnock Excerpts

Thursday 5th November 2015 Lords Chamber

[The Earl of Courtown]

I realise that, my Lords. I am afraid I will have to write to the noble Baroness; I have lost my train of thought.

[Lord Kinnock (Lab)]

My Lords, the report by the Living Wage Foundation demonstrates that in London the wage to be paid as a minimum should now be £9.40 an hour, instead of waiting until 2020 for it to reach £9 an hour under the Government’s formulation. What is the Minister’s view of the fact that, for another four years and more, millions of people who serve this country, serve this capital and serve every industry and activity outside it are going to be grossly underpaid?

[The Earl of Courtown]

My Lords, the noble Lord makes a point relating to the UK living wage of £9.40 in the capital of this country. Employers choose to pay the UK living wage on a voluntary basis. It is not actually affordable for all employers. The rates for the national minimum wage and the trajectory for the national living wage toward its target of 60% of median earnings by 2020 are recommended by the independent Low Pay Commission in order to set the pay floor as high as possible without having a material impact on employment.