Oral Answers to Questions

Debate between Vince Cable and Kerry McCarthy

Thursday 8th January 2015 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

1. What steps the Government are taking to increase the value of the minimum wage and encourage firms to pay the living wage.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

On our return to Business questions after the break, may I wish you, Mr Speaker, and all Members a happy new year? I am sure that the thoughts of everybody in the House this morning are with France and, in particular, with the relatives and friends of those who were killed and injured in the appalling terrorist atrocity yesterday.

Last year, the Government announced the first above inflation increase in the national minimum wage since the 2008 banking crisis, benefiting more than 1 million workers. Since 1 October 2014, full-time minimum wage workers have seen an annual cash increase of £355 in their pay packets, and we expect real-terms increases to continue as the economy recovers. We support employers paying the living wage where it is affordable and not at the expense of jobs.

[Kerry McCarthy]

I thank the Secretary of State for that response. He will know that for every £1 that employers pay above the minimum wage to lift workers to the living wage, the Treasury reaps 49p in reduced benefits and increased tax revenues. Why will his Department not consider using that increased revenue to incentivise businesses to pay the living wage for the first 12 months, as Labour is proposing with its make work pay contracts?

[Vince Cable]

It is precisely because of that revenue wedge that the Government have invested so much resource in lifting the threshold so that low-paid workers are not caught in taxation. That has substantially alleviated the pressure on the living standards of low-paid workers.

Executive Pay

Debate between Vince Cable and Kerry McCarthy

Monday 23rd January 2012 Commons Chamber

[Vince Cable]

I am not terribly comfortable with the phrase “crony corporatism”, but my hon. Friend refers specifically to directors serving on each other’s boards. We have looked at the facts on that. There are few examples of reciprocal agreements, but there are cases— 50 out of 1,000 or something of that order—in which directors serve on the board of another company. We are looking at how we can limit that, because it creates a somewhat more incestuous environment and lacks the diversity we are seeking.

[Kerry McCarthy (Bristol East) (Lab)]

It is often not the management or those in executive roles who get the highest pay packages, particularly in the financial sector. For example, I have heard a rumour that at least one of the traders at RBS is going to get a higher bonus than Stephen Hester. Will the Minister tell us whether his proposals, particularly on transparency, will cover traders too?

Higher Education and Student Finance

Debate between Vince Cable and Kerry McCarthy

Tuesday 12th October 2010 Commons Chamber

[Vince Cable]

We certainly regard it as a reasonable challenge to ensure that the higher education system takes a larger proportion of people from disadvantaged backgrounds, and I have made that very clear. On most measures, social mobility declined under the previous Government.

[Kerry McCarthy (Bristol East) (Lab)]

Is it the Government’s intention to accept the recommendation to restrict access to student finance on the basis of aptitude, and if so will the Secretary of State consider the view that UCAS points are not always the best indicator of future academic potential? What will he do to encourage young people who might show future potential, especially those from disadvantaged backgrounds?

[Vince Cable]

There are proposals in the Browne report on the reform of what is called the tariff system. We need to look at those carefully, as they are technically complex and may well have the unintended consequences that the hon. Lady has described. However, I am not making a recommendation on that point at the moment.