Oral Answers to Questions

Debate between Mike Kane and Vince Cable

Thursday 10th April 2014 Commons Chamber

[Vince Cable]

I remind my hon. Friend that, based on the recommendations of the Low Pay Commission, the Government announced recently the biggest increase in cash terms since the financial crisis—a 3% increase, which is an increase in real terms. I suspect that with the central problem in the care sector, which is with domiciliary care workers whose travel times are not properly counted, we are dealing with an abuse of the minimum wage system, and it needs to be pursued in that context.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

A KPMG study found that the introduction of a living wage increased productivity and reduced sickness absenteeism and staff turnover. In fact, its introduction was cost-neutral for all these firms. As it makes such a good business case, why are the vast bulk of local authorities that have introduced a living wage Labour ones?

[Vince Cable]

The process that the hon. Gentleman described is the right one: if it is good business practice, good businesses will follow it and out-compete their competitors, and I hope that that is what will happen.