EU Directive: Adequate Minimum Wages

Lord Londesborough Excerpts

Wednesday 18th March 2026 Lords Chamber

[Lord Leong (Lab)]

The noble Lord would not expect me to agree with him, and I do not. As I mentioned in yesterday’s debate on the regret amendment, and I shall share it again, Confucius reminds us that harmony among people is the best foundation for great achievement, and when we work together, success belongs to all. We have to address this issue of disparity between workers who are paid less and less in the overall scheme of things and the average wage in the country. We need to balance that up to two-thirds of the median wage.

[Lord Londesborough (CB)]

My Lords, given the Minister’s background as a successful entrepreneur, does he agree that, whether coming from the EU or from here, minimum wage directives are not economically sustainable unless they reflect the employer or the state’s ability to pay out of revenues rather than increased borrowing?

[Lord Leong (Lab)]

I also gently remind noble Lords that the minimum wage is carefully considered by the independent Low Pay Commission, chaired by the noble Baroness, Lady Stroud, which examines the economic conditions, labour market data and evidence from employers and other stakeholders. The Government’s aim remains to set a wage floor that maintains living standards while protecting employment opportunities. Recent rises mean that the national living wage now makes up a historically high proportion of median earnings, supporting millions of low-paid workers right across the country. I am sure that noble Lords will agree that paying workers well is good for the economy.