13 Mar
Question
Minimum and Living Wages

The session focused intensely on the impacts of the national minimum wage and national living wage on workers in the UK, highlighting the government's commitment to improving wages and worker conditions. Labour speakers emphasized the advantages of their policies in uplifting low-paid workers, while Conservative members expressed concerns over business impacts due to increased wages and other financial policies. Key statistics indicate the benefits span over 3 million workers receiving higher pay come April, with regional impacts showing considerable benefits in Scotland and north-east England.

140,000 workers

Estimate of workers in north-east England set to benefit from the wage increase.

Outcome

The debate underlined a clear division between Labour's focus on increasing living standards through wage hikes and securing workers' rights and Conservative concerns around the potential negative impacts on businesses and employment due to increased operational costs. While Labour maintained their strategies benefit the wider economy and increase disposable incomes, Conservatives demanded further impact assessments.

Key Contributions

Kenneth Stevenson
Labour

Pressed for specific impact analysis on his constituency, Airdrie and Shotts, highlighting the advantages of Labour’s worker rights overhaul.

Luke Akehurst
Labour

Acknowledged the government's efforts to prioritize working families, querying the widespread regional benefits of wage increases in north-east England.

Jonathan Reynolds

Explained Labour’s commitment to make work pay, stressing this was vital for improving employment security and living standards.

John Lamont
Conservative

Raised concerns from small business owners in his constituency regarding the financial strain imposed by national insurance hikes and increased wages.

Robbie Moore
Conservative

Critiqued the collective economic burden on local businesses due to several government-implemented policies, including wage increases.

Original Transcript
Kenneth Stevenson
Airdrie and Shotts
Lab
Question
UIN: 903162

5. What assessment his Department has made of the potential impact of the national minimum wage and national living wage on families in Airdrie and Shotts constituency.

Luke Akehurst
North Durham
Lab
Question
UIN: 903165

6. What assessment his Department has made of the potential impact of the national minimum wage and national living wage on families.

The Secretary of State for Business and Trade
Jonathan Reynolds
00:00

More than 3 million workers are expected to receive a pay rise due to increases to the national minimum wage in April, protecting the lowest paid in society.

After our changes to the remit, we accepted in full the recommendations of the Low Pay Commission, which considers the impact of rates on business, competitiveness, the labour market, the wider economy and the cost of living.

Our impact assessments are available only by region—estimates by constituency are not available—but the simple truth is that workers in every constituency are better off under this Labour Government.

Jonathan Reynolds
00:00

The plan to make work pay is a core part of our mission to grow the economy, raise living standards and create opportunities for all, and there will be significant benefits for workers in insecure and low-paid jobs in central Scotland, including in Airdrie and Shotts.

This plan is about making people stay in work.

It is about making work more secure and more family-friendly, improving living standards and putting more money in workers’ pockets, but it is also about showing that politics can work for people who may have given up on this place as somewhere that can improve their living standards, their lives and those of their families.

For that, I am very proud of this Government.

Luke Akehurst

The 6.7% increase in the national living wage in April clearly shows that this Labour Government are on the side of working people in North Durham and across the country and are making work pay.

Can the Minister tell me how many families in north-east England will benefit from the increase in the national living wage and national minimum wage next month?

Jonathan Reynolds
00:00

I thank my hon. Friend for his support. Around 140,000 workers in north-east England will feel the benefits of this direct pay rise.

I know his North Durham constituency well—I am no stranger to Chester-le-Street—and not only will his constituents get a pay rise, but his local shops, his restaurants, his pubs and more will get what they need most of all: customers who have got a bit of money to spend.

John Lamont
Berwickshire, Roxburgh and Selkirk
Con

Last Friday, I spent the day visiting local shopkeepers in Kelso, many of whom employ their staff on the national minimum wage and the national living wage. Their biggest pressure just now is dealing with this Labour Government’s national insurance hike.

They are facing a very difficult choice about whether they continue to employ people. What is the message from the Minister to those hard-working local shopkeepers?

Jonathan Reynolds
00:00

The thing I would cite most of all to the hon.

Member’s constituents is the doubling of the employment allowance in the Budget and the threshold being removed, which means that some smaller businesses will actually be paying lower national insurance contributions than they would have paid before the Budget.

However, I never shy away from the fact that the choices we had to make in the Budget were out of necessity, due to the black hole that was left behind. I am yet to hear any offer from Conservative Members as to how they would fill it.

At these questions, we will talk about tripling compensation for victims of the Post Office Horizon scandal only because the money is there. It was not there under the Conservative party. We will talk about money for the steel industry, standing behind that industry.

Again, money was promised but not delivered. If promises are made, the resources to do those things have to be there. They were not there under the Conservative party. They are under Labour.

Robbie Moore
Keighley and Ilkley
Con
09:54

Whether it be the increase in the minimum wage, the increase in employer national insurance, the increase in business rates, or indeed the changes made to the Employment Rights Bill, all of these measures collectively are negatively penalising many businesses across my constituency, whether in Keighley, Ilkley or further afield.

As a result, redundancies are having to be made, or the price of products and services are having to increase, and these businesses cannot absorb the additional increase that this Labour Government are putting on them.

Did the Government undertake any economic impact assessment of what all of these measures collectively would have on hard-working businesses across my constituency?

Jonathan Reynolds
09:54

As I have said to Conservative Members before, of course we are very sensitive to the aggregate impact of Government policy, because, frankly, having observed the Conservative Governments of the previous 14 years, I thought they completely missed this point and at many times had different Departments doing completely opposing things.

I want to say something specific on business rates. No business rates relief was planned had the Conservative party won the election.

The reduction to 40% was an increase in what was in the national accounts—again, short-term decisions for short-term, partisan, political benefit; no serious plan for the future. The hon. Gentleman will have seen the figures from the Insolvency Service this week, which are very interesting.

They show that fewer people have been made redundant over the past 12 months than in the year before, so I am afraid that the doom-mongers of the Conservative party have been proved absolutely wrong by the statistics that we have.

All content derived from official parliamentary records