National Living Wage

Lord Lennie Excerpts

Monday 17th January 2022 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes an important point. I am disappointed by some of the responses from the Opposition Benches. As always with these matters, it is a question of getting the balance right. Of course, we all want to see the lowest paid in society paid more—nobody would want to see that more than I would and I am sure my noble friend feels the same way—but we have to bear in mind the importance of considering whether it is affordable for business. That is why we have the independent Low Pay Commission that makes recommendations on the maximum level of increase that can be afforded without undue inflationary impacts and is affordable for business.

[Lord Lennie (Lab)]

I remind noble Lords—before the Minister takes too much credit for it—that it was the Labour Government who introduced the national minimum wage and that it was introduced against universal hostility from the Tory Opposition. Given the doubling of energy prices expected in April, does the Minister believe that the rise in the minimum wage to £9.50 an hour will be sufficient for ordinary household budgets to cope?

[Lord Callanan (Con)]

Indeed, I am happy to pay credit to the Labour Government of the time for introducing the national minimum wage and I am happy to take credit for the biggest increases in the national minimum wage that we, as a Conservative Government and a Conservative-led Government, have implemented since we came to power. As I said, these are difficult issues. We all want to see it increasing; that is why we have the independent Low Pay Commission to provide independent advice to the Government on what is affordable for business. We are working towards the manifesto commitment to increase the level to two-thirds of national median pay.