Oral Answers to Questions

Debate between Stephen Crabb and Lord Hammond of Runnymede

Tuesday 9th April 2019 Commons Chamber

[Mr Hammond]

There are two parts to our approach. The first is a laser-like focus on raising productivity—investing in the infrastructure and skills that we need to raise productivity—because that is the only way to raise wages sustainably. We have also introduced the national living wage, and have increased it way ahead of inflation. We will have to set a new target for the national living wage from next year. I announced in the Budget that I have asked Professor Arindrajit Dube to conduct a survey of the literature on minimum wages and employment opportunities for people on low pay, so that we can address this issue and seek to raise the pay of the lowest paid as fast as we can without destroying their employment opportunities.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Further increases in the national living wage are vital to tackling the low pay culture, but does the Chancellor agree that as the rates increase, so does the risk of non-compliance? Does he therefore think that Her Majesty’s Revenue and Customs is adequately resourced to be able to go after rogue employers who do not pay a fair wage?

[Mr Hammond]

Yes, my right hon. Friend is right. We have provided HMRC with additional resources, and wherever HMRC get reports, it pursues them. It also proactively looks for employers who are not meeting their legal obligation.