How much would Miliband's living wage plans actually change?

"Naming and shaming" employers who don't pay the living wage is likely to have disappointing results.

Labour says it would "name and shame" employers that don’t pay all their workers a living wage – the income a person needs to be able to afford a basic standard of living. But how shaming would inclusion on Miliband's list of offenders be? Employers on it wouldn’t exactly stand out: KPMG calculates that one in five UK workers are not paid a living wage, which stands at £7.45, or £8.55 in London.

That makes for safety in numbers, and with low wages heavily concentrated in certain sectors – 70 per cent of cleaners, waiters, and kitchen staff are paid less than the recommended rate – the competitors of affected companies would be even less likely to pay the wage, keeping the pressure to change low.

Miliband’s pledge recalls the strategy of anti-tax-avoidance protest group UK Uncut, which drew attention to high profile companies that avoided large sums of tax, in the hope of shaming them into paying more. The campaign succeeded in raising the issue up the political agenda – but corporate tax avoidance is still rife, and there have so far been no major public reversals by their targets: at the height of the protests last year, companies like Vodafone reported record profits, whilst spokespeople simply repeat that they are following the law.

One aim of UK Uncut was to urge politicians to act on the issue and change the law, but as a politician himself, Miliband’s approach to low pay seems somewhat confused. Low paid workers may well also ask why Labour needs to be in government to do what a small campaign group did with a Twitter account and a lot of time on their hands.

UK Uncut also had the advantage of focusing its fire on specific, high profile offenders. But if a Labour government were to target specific companies to get high-profile results, they'd be likely to fall foul of EU state aid regulations: governments are strictly forbidden from picking on certain companies, or offering an "advantage in any form whatsoever conferred on a selective basis to undertakings by national public authorities".

The "name and shame" approach could even be embarrassing for Labour, which doesn’t have a spotless record on the living wage itself. Relying on negative media coverage and civil society to do the job could end up with the party turning its fire on itself. The party’s longest serving living Prime Minister only recently signed up to paying his staff the bare minimum wage, and Tony Blair, among others, would be one of those shamed for not paying the living rate if the proposals were comprehensively implemented.

If Labour is serious about workers earning a living wage then it will probably find the results of its flirtation with business voluntarism disappointing. The actions of companies are ultimately guided by the profit motive and shareholder value, and recent history suggests that activism can rarely, by itself, create corporate social responsibility out of thin air.

Ed Miliband is campaigning for companies to pay the living wage, currently £7.45 an hour. Photograph: Getty Images.

Jon Stone is a political journalist. He tweets as @joncstone.

Photo: Getty
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On the important issues, Louise Casey all too often has little to say

Far from moving the debate on, this new report on integration adds little to the report I commissioned in 2001. 

For 15 years, “numerous government reports on community cohesion and integration have not been implemented with enough force or consistency” concludes Louise Casey’s review of  integration.  The government’s lukewarm response suggests their effort will be as “diluted and muddled” as all the rest.

There’s a deeper reason why governments shy away from the measures that are needed. The report's wealth of data sets out a stark if sometimes contestable picture of a divided society.  But no amount of data can really bring the lives of our fellow citizens to life. As the Brexit vote underlined, this is now a nation divided by class, geography, education, wealth, opportunity and race. Those divisions colour the way we live our lives, the way we see problems in society, the relations we have with others, and our political choices. The report, like many before it, stops short of setting out that reality. It’s easier to pretend that most of us pretty much agree on most things; but just few people don’t agree and they must be the problem. Predictably, much of the early coverage has focussed on the Muslim community and new migrants. If only it were so easy.

According to Casey “in this country, we take poverty, social exclusion, social justice and social mobility seriously” and we do it “across political divides”. Apparently “creating a fair, just society where everyone can prosper and get on” is a cornerstone of British values. Yet for page after page the report chronicles the serial failure of this benign consensus to tackle educational under-performance, and economic and racial disadvantage. If we all agree, how come we haven't done anything about it?

These problems are not certainly easy to solve, but more lip service is paid to tackling them than effort. The practical material issues documented here need addressing, but punches are pulled when hard answers are needed. Given the dramatic impact of mass migration on cohesion, is integration possible while current rates of immigration persist? Can we find the political will to tackle poverty and disadvantage when those who might benefit from the effort are divided against each other by suspicion, race, geography and values? After all, rather than progressive policies producing a cohesive society, social unity is the precondition for the introduction of progressive policies.

We don't actually actually agree on what our “fundamental values” mean in practice. We can all sign up to democracy and the rule of law, but as soon as those are put into practice – see the court case on Article 50 – we are divided. When judges are popularly seen as “enemies of the people” and a vote in an elected parliament as a threat to democracy, in what sense are law and democracy fundamental?

Casey usefully highlights how treating homeless families equally, irrespective of ethnicity and length of residence can create the perception that minorities are being favoured over long standing residents. Our differing views on what is “just” and how “fairness” are defined can tear us apart. Is it fair to favour the newcomer over the indigenous? Is it just to put length of time on the waiting list above housing need? We often don't even acknowledge the legitimacy of other points of view, let alone try to find common ground.

The continual invocation of Britain and British values lends an air of unreality to the report.  Most people in England include British in their identity, but Englishness and English interests are of growing importance. In a worrying development, some areas of England  may be polarising between a white Englishness and an ethnic minority Britishness. Integration won't happen without a shared national story that combines a unifying national identity with the acceptance that we all have more than one identity that matters to us. Ignoring the reality of complex and multiple identities closes off one essential way forward.

None of this means that the criticism of some reactionary and occasionally dangerous ideas and practices in the Muslim community should be ignored and not confronted. But in a country where the established church opposes homosexual relationships and praise for Vladimir Putin's Russia is now mainstream politics it is hard to believe that all our problems can be reduced to the behaviour of a minority of a minority community.

John Denham was a Labour MP from 1992 to 2015, and a Secretary of State 2007 to 2010. He is Director of the Centre for English Identity and Politics at Winchester University