Living Wage

Lord Mawhinney Excerpts

Thursday 8th November 2012 Lords Chamber

[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.

[Lord Mawhinney]

My Lords, how many jobs do the Government estimate would be lost if the living wage was substituted for the national minimum wage?

[Lord Gardiner of Kimble]

My Lords, I do not have that figure in front of me but my noble friend has raised something which I think has also been raised by the Federation of Small Businesses. It is clearly important that we make sure that in asking and encouraging business to pay more, it happens only where it is possible. What we cannot have is job creation and job retention put in jeopardy.