Tax Credits Debate

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Department: HM Treasury
Tuesday 15th September 2015

(8 years, 8 months ago)

Commons Chamber
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Damian Hinds Portrait Damian Hinds
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What a choice!

Alex Cunningham Portrait Alex Cunningham (Stockton North) (Lab)
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I am grateful to the Minister. He talks about an environment in which wages are rising. Wages are rising in some areas, but public sector workers have seen a tremendous reduction in their income capacity, and many of them will be affected massively by what the Government want to do. The Government need to think more about public sector workers, whose wages are not going up.

Damian Hinds Portrait Damian Hinds
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The hon. Gentleman is absolutely right to note the hard work done by public sector employees. There are pay restraints going on in the public sector—I do not deny that for a moment—but wages are growing at 2.8% in real terms this year, which is pretty broadly based across the country, while output per head is growing more in the north than the south.