Tax Credits (Working Families)

Richard Fuller Excerpts

Tuesday 7th July 2015 Commons Chamber

[Shabana Mahmood]

I think that it is for the Government to tell us what they plan to do about the living wage, and I hope that the Minister will enlighten us when he winds up the debate. At the time of the general election, we made a manifesto commitment to incentivise employers to pay the living wage. The Government are welcome to steal that policy, but they should steal it—and allow it to embed a living wage, and higher wages, in our economy—before they start messing around with tax credits.

[Richard Fuller (Bedford) (Con)]

rose—

[Alan Mak (Havant) (Con)]

rose—

[Shabana Mahmood]

I will give way to the hon. Member for Bedford (Richard Fuller), but then I must make some progress.

[Richard Fuller]

The hon. Lady mentioned the Labour party manifesto. Will she be a bit more specific? For example, does she favour the granting of tax credits for training contracts to take people from the minimum wage to the living wage, does she support a requirement for local authorities that commission care to commission it in a way that enables employers to pay the living wage, and does she agree that, given the persistence of zero-hours contracts for less than two years, there should be a requirement for such contracts to carry the living wage?

[Shabana Mahmood]

The hon. Gentleman has made some interesting and important observations about the way in which we can encourage employers to pay the living wage, and I hope that Ministers take up his suggestions. Ours was a clear, straightforward policy to incentivise the paying of the living wage by sharing with employers the benefit that the Government obtain because people are earning more money.