Meeting of the Parliament 18 March 2015
That is certainly illustrative of an element of very bad practice in the system. I do not dispute that, but that is not to say that the system as a whole is not a workable and welcome source of support.
I believe that a strong and growing economy that provides more jobs gives opportunity to those who are seeking work and greater choice to those who are in work. However, let us look at some of the specific suggestions to address in-work poverty. The motion asks us to consider a £10 minimum wage by 2020. As the cabinet secretary said, it was announced yesterday that the minimum wage is to rise in line with the recommendations of the Low Pay Commission. Indeed, the chancellor said today that the objective is an £8 minimum wage by the end of the decade, and that is to be welcomed.
The system that we have is one of progressive rises linked to what the economy can reasonably afford, based on recommendations not by Government but by an independent body. With now-visible economic growth, it is reasonable to anticipate that the minimum wage will rise. It is not reasonable to pluck a figure out of the air without the slightest attempt to model its economic impact.