Finance Bill (Second sitting)

Maria Caulfield Excerpts

Thursday 17th September 2015 Public Bill Committees

[Maria Caulfield (Lewes) (Con)]

As someone from a healthcare background—I was a nurse—I take the point made by the hon. Member for Worsley and Eccles South about how vital staff are, but surely if there are cost issues, we must find ways to meet the cost pressures elsewhere. Paying the living wage is absolutely fundamental. Yes, it puts pressure on budgets, but not paying the living wage is not the way to address those issues.

[Mr Gauke]

I am grateful to my hon. Friend for her contribution. She makes a very good point.

The hon. Member for Worsley and Eccles South asked what would happen if inflation is higher than the increase in the national minimum wage. The Government’s aim is to have a national minimum wage that helps as many low-paid workers as possible without damaging their employment prospects. We welcome the fact that the Low Pay Commission shares our aim of seeing progressive real increases in the national minimum wage. It is because we have a strong economy and high levels of employment that we are seeing increases in the national minimum wage and that we now have the flexibility to introduce a national living wage.

On those who do not benefit from the increase in the personal allowance, we believe that in our income tax system someone working 30 hours a week on the national minimum wage should not pay income tax. These changes will ensure that those individuals will be taken out of income tax. We want to create incentives to encourage those who, for example, wish to increase their hours if their circumstances permit them to do so. They should be able to do that without finding themselves paying income tax.