Living Standards

Lord Lea of Crondall Excerpts

Monday 5th September 2011 Lords Chamber

[Lord Sassoon]

Indeed, I agree with the points that my noble friend makes. The Government are working on other initiatives to help address this problem, such as driving through the entire package of tax and welfare reforms, introducing the universal credit from 2013-14 and making it pay to work. It is a terrible state of affairs that everything earned by a lone parent who works part time for 10 hours a week is immediately taken off that person through changes to their tax and benefit. Therefore, the introduction of the universal credit and driving through our reforms to tax and welfare are critical to making inroads into this problem.

[Lord Lea of Crondall]

Does the Minister recall that Mr David Cameron, during the election campaign, expressed regret about growing inequality in this country? Of course, that inequality has now accelerated. Does he not agree that the time has come for remuneration committees, which are mutual admiration societies that have been going higher and higher above the upper quartile, should be subject to a reformed company law structure, with supervisory boards and multi-stakeholders to make sure that these people cannot just go on paying themselves a fortune without any regard to the principle of greater equality?

[Lord Sassoon]

Just to be completely clear, inequality increased under the previous Government. The latest data show inequality coefficients to be flat, but it is too soon to see what the trends are under this Government. However, inequality increased under the previous Government—and that was in a decade when 40 per cent more in real terms was put into working-age benefits and tax credits, so this is a very difficult problem to crack. However, I agree with the noble Lord that it is important that informed and active shareholders make sure that they consider the split of rewards within companies between shareholders and employees—and that is precisely why it is high up the agenda of my right honourable friend the Business Secretary, who is considering proposals as we speak.