National Living Wage

Rebecca Pow Excerpts

Monday 18th April 2016 Commons Chamber

[Angela Crawley]

We can agree that workers deserve a real living wage, but this is not a real living wage. To go back to my argument, it is merely an enhanced minimum wage. While I would welcome a living wage, this does not meet the mark. Sadly, this does not even apply to those under 25. Try telling a 17-year-old part-time worker that their work is of less value than that of someone who is a few years older. Is that really what we think of our young people? Is that really the value we place on the work of our young people, who are all too often forgotten in this Government’s priorities?

The term “living wage” is important. In Scotland, we recognise that. We set a target to have 500 real living wage employers by the end of this Parliament and we have already exceeded it. Last year, the Scottish Government announced that they had become an accredited living wage employer. The SNP Government have introduced a requirement to pay the real living wage as an integral part of the public sector pay policy. Since 2011, we have invested £1.5 million per year in paying the living wage rate across the parts of the public sector where the Scottish Government control the pay bill, directly benefiting 3,000 workers. Scotland has a higher proportion of workers who are paid the living wage than any other nation of the UK.

There are some positive examples in my constituency, such as Hamilton citizens advice bureau, Bluebird Care in Larkhall, the medical centre in Lanark and Emtec contractors in Uddingston, all of which are leading the way as real living wage employers and showing what can be achieved. In many ways, what the Government are doing will undermine the incentive for employers to achieve a real living wage.

Despite what the Government have said, they must do more to ensure that no worker is worse off as a result of this change. We have all seen the worrying reports about employers mitigating the cost of the new rate by cutting hours and premium rates for overtime and bank holidays. The hon. Member for Mitcham and Morden asked the Prime Minister whether he would guarantee that no worker would be worse off as a result of the national living wage, but she never received a response. Perhaps the Minister will give that commitment today.

[Rebecca Pow (Taunton Deane) (Con)]

I am depressed by the negativity of this debate. People who have come to me in my constituency are pleased that they will have £900 more in their pockets. Some 40% of people will get a wage rise. This is something that the Government have been speaking up for. People want more money in their pockets and they are going to get it. On the whole, businesses in my constituency are in favour of the national living wage. It is difficult, but they are for it.

[Angela Crawley]

Although it will always be welcome if people have more pennies in their pocket, the Government are not looking at the full picture. When cuts to universal credit outweigh any benefit from the so-called national living wage, how can it be defended as a national living wage at all?