National Living Wage

Lord Watts Excerpts

Monday 17th January 2022 Lords Chamber

[Lord Callanan (Con)]

Obviously I was not in government at the time but, looking back at the debate, a lot of independent economists were concerned about the possible impact. As I indicated in previous answers, nobody wants to see rises in unemployment. At the end of the day, low pay is better than no pay at all. But I am delighted to say that with the increases in the national minimum wage—and our record on this is second to none—we have seen the national living wage outpace the rate of inflation by over 20 percentage points since we have been in power. That is a good thing: it has not resulted in a rise in unemployment, and I think that is something we should all welcome.

[Lord Watts (Lab)]

My Lords, the Minister takes credit for the increases the Government have introduced. Given the cost of energy and foodstuffs to low-income families, does he think the increase that he is taking credit for will compensate those families for the increases they now face?

[Lord Callanan (Con)]

We take credit because the Government accepted the recommendations of the Low Pay Commission, which, as I have indicated, was set up to consider all these matters. But I agree with the noble Lord: it is going to be difficult—the cost of living is going to increase substantially, probably, over the next few months, with food and energy prices. It comes back to the points made by some of my noble friends earlier: it is important that we get a grip on inflation because that is something that affects the lowest paid the most.