National Minimum Wage

Debate between Richard Fuller and Russell Brown

Wednesday 15th October 2014 Commons Chamber

[Mr Brown]

Absolutely. As my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) said earlier, low-paid workers do not salt the money away but go out and spend it, and that is what we need. I honestly believe that that is where the coalition Government, to a certain extent, have failed. They have taken money away from some of the poorest communities and households, and there is no doubt that if we had left money in their hands, it would have been spent.

[Richard Fuller]

rose—

[Mr Brown]

Mr Deputy Speaker is looking at me and I want to draw to a conclusion.

I want to mention “make work pay” contracts. In November last year, the Leader of the Opposition announced

“that a future Labour government would encourage employers to pay the living wage through new ‘Make Work Pay’ contracts.

Firms which sign up to become Living Wage employers in the first year of the next Parliament will benefit from a 12-month tax rebate of up to £1,000—and an average of £445—for every low paid worker who gets a pay rise.

This measure will be entirely funded from the increased tax and National Insurance revenue received by the Treasury when employees receive higher wages. Additional savings in lower tax credits and benefit payments, as well as increased tax revenues in future years, will cut social security bills and help pay down the deficit”—

as we all want to do. That, without a shadow of a doubt, is a commitment that an incoming Government would make the desperate moves that have to be made to reduce the deficit.

[Richard Fuller]

Will the hon. Gentleman give way?

[Mr Brown]

I am going to finish now.

I am proud that when I came into this House I was one of a team of people who took forward the National Minimum Wage Bill. I have always said that even if I do nothing else in life, I can say that I played that part in what that Labour Government did. With no doubt whatsoever, I will be supporting our motion. I would like to think that one or two Government Members who have spoken will support us too.