Oral Answers to Questions Debate

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Department: Wales Office

Oral Answers to Questions

Jessica Morden Excerpts
Wednesday 22nd October 2014

(9 years, 6 months ago)

Commons Chamber
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Stephen Crabb Portrait Stephen Crabb
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I agree with my hon. Friend. Giving the Welsh Government fiscal powers for the first time means that they have to raise money as well as spend it, which I think will lead to a much healthier political debate down in Cardiff on real responsibility. It is about not only deciding how to spend the money, but taking responsible decisions on how it is raised, and I think that is a big step forward in the political development of Wales.

Jessica Morden Portrait Jessica Morden (Newport East) (Lab)
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2. If he will estimate the potential effect of increasing the minimum wage rate by £1.50 on the economy in Wales.

Alun Cairns Portrait The Parliamentary Under-Secretary of State for Wales (Alun Cairns)
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The Government’s increase of 3% in the national minimum wage this year means that low-paid workers are enjoying the biggest cash increase in their take-home pay since 2008. The independent Low Pay Commission is responsible for recommending the level of the national minimum wage.

Jessica Morden Portrait Jessica Morden
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About 73,000 people in Wales are in minimum wage jobs, and a quarter of a million earn less than the living wage. Will the Minister commit his party to Labour’s plan to raise the minimum wage to £8 an hour, which would at least start to tackle the scandal of low pay in Wales?

Alun Cairns Portrait Alun Cairns
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I am surprised that the hon. Lady raises that question, given that the commitment to £8 an hour by 2020 has been somewhat derided by independent commentators—Alan Milburn himself said that it lacked ambition—because the current projection shows that the minimum wage will rise to £8.23 an hour by 2020.