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Tuesday Volume 632 28 November 2017 No. 58 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 28 November 2017 © Parliamentary Copyright House of Commons 2017 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 139 28 NOVEMBER 2017 140 Stuart C. McDonald: A hard Brexit is predicted to House of Commons lose workers up to £2,000 a year in real wages. Is not the best policy for wages to stay in the single market? Tuesday 28 November 2017 Mr Hammond: The best policy for Britain, including for the wages of British workers, is to get a good deal The House met at half-past Eleven o’clock with the European Union that secures high levels of access to European markets after we leave the EU, and that is what we intend to do. PRAYERS Amanda Milling (Cannock Chase) (Con): In my constituency, one key thing that is important to wage Oral Answers to Questions growth is to ensure that we attract businesses that create high-skilled and high-paid jobs. Will my right hon. Friend join me in encouraging all of those involved in future developments, including the redevelopment of [MR SPEAKER in the Chair] the Rugeley B power station, to ensure that we attract high-tech and innovative businesses? TREASURY Mr Hammond: Yes. Indeed, that was the central theme of the Budget. If we are to ensure prosperity for all our people in the future, we must embrace the The Chancellor of the Exchequer was asked— technologies and businesses of the future and create the jobs of the future. We must be prepared to invest in Low-paid Workers: Wage Growth the infrastructure that is needed to support them and in giving our people the skills that they will need to take 1. Tommy Sheppard (Edinburgh East) (SNP): What advantage of those high-paid jobs. steps his Department is taking to support wage growth for low-paid workers. [902582] 21. [902606] Wes Streeting (Ilford North) (Lab): The fact is that, according to the Office for Budget 14. Stuart C. McDonald (Cumbernauld, Kilsyth and Responsibility, disposable incomes are set to fall this Kirkintilloch East) (SNP): What steps his Department year. On top of that, the cost of living is rising faster is taking to support wage growth for low-paid workers. than pay. The area that the Chancellor has direct [902598] responsibility for is public sector pay. Is it not time to remove the pay restraints on the lowest-paid public The Chancellor of the Exchequer (Mr Philip Hammond): sector workers to make sure that, as their bills go up, The national living wage will rise to £7.83 from April 2018. their wages keep pace? In total, that represents a pay rise of over £2,000 for a full-time minimum wage worker since the introduction of the national living wage in 2016, which has helped to Mr Hammond: I am sure the hon. Gentleman knows reduce the proportion of full-time jobs that are low that the blanket pay cap across the public sector has paid to the lowest level in at least 20 years. At the same indeed been removed—that was announced in July by time, in-work benefits support the incomes of poorer the Chief Secretary to the Treasury, my right hon. households and universal credit will mean that it always Friend the Member for South West Norfolk (Elizabeth pays to progress in work. Sustainable long-term pay Truss). That will mean that individual Secretaries of growth relies on improving productivity, which is why State can look at the particular circumstances of the we are increasing the national productivity investment workforces for which they are responsible—recruitment fund to more than £31 billion. and retention challenges and opportunities for improving workforce efficiency—and make proposals to the pay Tommy Sheppard: The Chancellor’spredecessor,George review bodies accordingly. Osborne, boasted that the minimum wage would be more than £9 an hour by 2020. That forecast has now Mr Philip Hollobone (Kettering) (Con): Will the been downgraded. Now that we are in the middle of the Chancellor confirm that Conservatives want people to longest fall in living standards in history, why should keep more of the wages that they earn and that, when the very poorest people pay for the crisis? They will lose we came to power in April 2010, disgracefully, people £500 a year compared with the promise that they were earning as little as £6,500 a year had to pay income tax? made just this spring. Now they can earn more than £11,500 before incurring an income tax liability. Mr Hammond: As I have just pointed out, those on the national living wage have actually gained £2,000 a Mr Hammond: Yes, £11,850—my hon. Friend is exactly year. The commitment on the national living wage was, right. It is by keeping to our commitment that we made and remains, that it will reach 60% of median earnings, in our manifesto of increasing the personal allowance and it will continue to do so. On the hon. Gentleman’s to £12,500 by 2020 that we will ensure that people keep other point, he will note that real household disposable more of their income. Going back to the original question, income per head, a much more appropriate measure of people on the national living wage are now £3,600 a living standards, is almost 5% higher in 2016 than it was year better off after tax than they would have been in 2010. in 2010. 141 Oral Answers 28 NOVEMBER 2017 Oral Answers 142 20. [902605] Martyn Day (Linlithgow and East Falkirk) In reference to the Chancellor’s first answer, what is (SNP): With households facing stagnating wages, high the connection between low wage growth and the slump inflation and soaring household debt and austerity, in productivity? why have this Government not followed the Scottish example and ended the public sector pay cap? Mr Hammond: As the hon. Gentleman will know, in the end wages can only be paid for by the productive Mr Hammond: I am not sure whether the hon. output of workers. Increasing the productivity of workers Gentleman was listening to the answer that I gave to the in the British economy, so that they can produce more hon. Member for Ilford North (Wes Streeting) a few and earn more in a way that allows their firms to remain moments ago. We have ended the blanket pay cap across competitive while paying them more, is the way forward, the public sector and are allowing Secretaries of State and that is what the Government will pursue. to make recommendations to the pay review bodies that reflect the circumstances of their individual workforces. Universal Credit: Household Income Huw Merriman (Bexhill and Battle) (Con): My constituency is in the top 10 constituencies for the 2. Danielle Rowley (Midlothian) (Lab): What discussions highest proportion of people on the minimum wage, so he has had with the Secretary of State for Work and the rise to £7.83 will be most welcome. Does the Chancellor Pensions on the effect of the roll-out of universal credit agree that moves such as that and increasing the personal on levels of household income. [902583] allowance will help us to further reduce income inequality in my constituency and the country at large? The Chief Secretary to the Treasury (Elizabeth Truss): Universal credit has already been very successful in Mr Hammond: My hon. Friend is exactly right. The getting more people into work by ensuring that work uncomfortable fact for the Opposition Front Benchers always pays, and that has boosted household incomes. is that income inequality in this country is now the lowest it has been since the mid-1980s—lower than it Danielle Rowley: I am not surprised that the Government was at any point during the 13 years of the Labour announced small changes to their discredited universal Government. credit programme in the Budget last week, following months of criticism, unanimous defeat on an Opposition Robert Courts (Witney) (Con): Will the Chancellor day motion, discontent across the whole House, rising confirm that, according to last month’sOffice for National debt arrears and even evictions. But what is surprising is Statistics figures, median disposable income is £600 higher that, rather than halt the botched roll-out and fix the than in the previous year and £1,000 higher than before failing system, the Government have chosen to put back the 2008 crash? Does he agree that it is the policies of only £1 for every £10 cut from the system. this Government, with their jobs miracle, that have made that possible? Mr Richard Bacon (South Norfolk) (Con): Give way! Mr Hammond: Yes, and it is one of this Government’s Danielle Rowley: No, thank you. proudest achievements that we have created 3 million Will the Minister accept that it is now a matter of new jobs in this country since 2010. The right hon. urgency that proper action is taken to address the real Member for Hayes and Harlington (John McDonnell) human suffering imposed on our communities by this might reflect on his prediction in 2011 that the Government’s roll-out? policies would cost the economy 1 million jobs. That turned out to be slightly wide of the mark. Elizabeth Truss: I think we should remember the Kirsty Blackman (Aberdeen North) (SNP): The gender 1.4 million people who spent the previous decade under pay gap has fallen by only 0.4% in the past five years.

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