Living Standards: Inequality

Lord Lea of Crondall Excerpts

Tuesday 7th March 2017 Lords Chamber

[Baroness Neville-Rolfe]

I thank my noble friend for that question. I believe that the national living wage, brought in in April last year, is a fantastic example of policies that the Government have introduced to make work pay. Looking forward, it will rise again, to £7.50 next month, and it has already given many working people in Britain the fastest pay rise in 20 years.

[Lord Lea of Crondall (Lab)]

My Lords, observers will have noticed that there is a startling contradiction between the presumption in the Question that income inequality has been growing very sharply and the presumption in the reply that it is doing the opposite. There are different measures, but most of them show that inequality is growing. Would it not be useful if the ONS convened a panel to get a little more clarity as to why figures can be bandied around that give such different descriptions of what is happening?

[Baroness Neville-Rolfe]

I think the ONS keeps us honest; it looks at these figures over time and very helpfully updates us. The OBR forecasts are also updated all the time so that we can see what is happening. I come back to the point that the Resolution Foundation is looking at a forecast, but if we look at what has happened, five years ago it was predicted by the IFS, I think, that there would be a rise in inequality. In fact, that has not happened. Actually, things have continued to progress and we have seen a recovery. That is what we need to continue by having the right policies, which this Government are pursuing under our new Prime Minister.