National Minimum Wage (Amendment) Regulations 2026

Lord Hannett of Everton Excerpts

Tuesday 17th March 2026 Lords Chamber

[The Earl of Effingham (Con)]

My Lords, following on from my noble friend Lord Sharpe, I ask the Minister, the noble Lord, Lord Leong, who has vast, successful business experience, why he thinks that Sir Tony Blair said, via his institute, just two weeks ago that Labour’s policies—such as this SI—are

“harming growth and undermining young people’s job prospects”.

[Lord Hannett of Everton (Lab)]

My Lords, I declare an interest. My colleague behind me was a member of the Low Pay Commission. I served 11 years on the Low Pay Commission. In fact, I remember its introduction and the howls of despair, sometimes from people who should have known better. Today the Low Pay Commission is in existence. Every party and every Government have accepted not only its recommendations but have actually said it would be a retrograde step to remove legislation that protects—I repeat, protects—the most vulnerable. I often wonder what the rates would be if we had never had the Low Pay Commission: if it was left to the generosity of politicians and employers. It was required, it was needed, and it has sustained its value consistently.

Sometimes there is a lack of understanding of how the commission reaches an agreement. My noble friend Lady Carberry touched on it. It is a tripart commission consisting of economists, employers and trade unions, and it is an evidence-based commission. I emphasise that. It is not something where you pick a figure because you think it is what people should earn. It has to be argued for in a responsible way by taking evidence from stakeholders such as employers, trade unions and entrepreneurs, and you arrive at a settlement. The commission debates heavily the effect on employment, including youth unemployment, but, if we are about anything in politics, it has to be about values as well. It has to be about protecting the lowest paid in society, who require support. The commission has survived so long because it has proved its case. Every recommendation has been accepted, including by the previous Government, and, if it had not been introduced, I repeat that I wonder what the rates of pay would be.

I say to the Minister that, when I listen to many of the views being expressed in the Chamber about regulations that improve the life of the low-paid worker, everything is going to be the straw that breaks the camel’s back. I heard this for years when I was on the commission. But it has survived and gone from strength to strength. I regret the noble Lord’s amendment to the Motion, and I concur with everything my noble friend the Minister said in his introduction.