Living Standards: Inequality

Lord Shinkwin Excerpts

Tuesday 7th March 2017 Lords Chamber

[Baroness Neville-Rolfe]

My Lords, I think we have to have a little context. Savings are necessary to reduce borrowing and to put the public finances back on a sustainable footing after the financial crisis. Between 1980 and 2014, spending on welfare trebled in real terms to £96 billion, while GDP increased by much less. Our approach is a different one. We are committed to supporting working families with a whole host of measures to get people back into work, to innovate, to grow and to put the country on a good footing. It is only a forecast from the Resolution Foundation. Forecasts are not always right, and we are determined to make the changes we need for this country.

[Lord Shinkwin (Con)]

My Lords, can my noble friend say whether any assessment has been made of the effect of the national living wage on reducing inequality and, indeed, whether there is anything more that can be done in this respect?

[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.