The public support a universal living wage - even if it costs jobs

Sixty per cent of workers agree that the minimum wage should be raised to the level of the living wage.

It's now hard to find a politician who doesn't think the living wage is a good idea. Those companies who pay their employees at least £7.45 an hour (or £8.55 in London), report increased productivity, reduced absenteeism, improved morale and higher staff retention rates. And the government benefits too. The IFS estimates that for every £1 spent on raising pay to living wage level, around 50p returns to the Treasury in the form of reduced welfare payments and higher tax revenues. 

It's statistics like this that prompt some to ask why we shouldn't simply raise the minimum wage (currently £6.19 an hour) to the level of its younger brother. It's an option that all party leaders, including Ed Miliband, have so far rejected but what do the voters think? Labour List has just published a new Survation poll (carried out as part of the Unions21 Fair Work Commission) of 1,004 employed people showing that 60 per cent support a compulsory living wage - even if it costs jobs. Asked whether the government should "increase the minimum wage to ensure everyone earns enough to meet reasonable living costs, even if this results in job losses", 71 per cent of Labour voters, 66 per cent of Lib Dems and 44 per cent of Conservatives say yes. There is, as Mark Ferguson notes, majority support for the move across all regions of the UK and all classes. 

The key qualification, of course, is that only those in employment were polled. Those out of work might be less sympathetic to the idea of a universal living wage. Modelling by the National Institute of Economic and Social Research suggests the policy would reduce labour demand by 160,000 jobs, the equivalent of a 0.5 per cent rise in unemployment. But as Jon Stone has previously argued on The Staggers, the risk of higher unemployment deserves to be weighed against the potential benefits of the move. The Resolution Foundation estimates that a mandatory living wage would save the government £2bn a year in lower benefits and higher tax receipts, money that could be used to fund employment programmes, such as Labour's jobs guarantee. At the same time, it would dramatically improve work incentives and act as a powerful economic stimulus. 

The public, as is often the case, are ahead of the politicians on this debate. At the very least, the arguments above deserve to be heard in Westminster. 

Ed Miliband addresses workers at Islington Town Hall on November 5, 2012 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Benn vs McDonnell: how Brexit has exposed the fight over Labour's party machine

In the wake of Brexit, should Labour MPs listen more closely to voters, or their own party members?

Two Labour MPs on primetime TV. Two prominent politicians ruling themselves out of a Labour leadership contest. But that was as far as the similarity went.

Hilary Benn was speaking hours after he resigned - or was sacked - from the Shadow Cabinet. He described Jeremy Corbyn as a "good and decent man" but not a leader.

Framing his overnight removal as a matter of conscience, Benn told the BBC's Andrew Marr: "I no longer have confidence in him [Corbyn] and I think the right thing to do would be for him to take that decision."

In Benn's view, diehard leftie pin ups do not go down well in the real world, or on the ballot papers of middle England. 

But while Benn may be drawing on a New Labour truism, this in turn rests on the assumption that voters matter more than the party members when it comes to winning elections.

That assumption was contested moments later by Shadow Chancellor John McDonnell.

Dismissive of the personal appeal of Shadow Cabinet ministers - "we can replace them" - McDonnell's message was that Labour under Corbyn had rejuvenated its electoral machine.

Pointing to success in by-elections and the London mayoral election, McDonnell warned would-be rebels: "Who is sovereign in our party? The people who are soverign are the party members. 

"I'm saying respect the party members. And in that way we can hold together and win the next election."

Indeed, nearly a year on from Corbyn's surprise election to the Labour leadership, it is worth remembering he captured nearly 60% of the 400,000 votes cast. Momentum, the grassroots organisation formed in the wake of his success, now has more than 50 branches around the country.

Come the next election, it will be these grassroots members who will knock on doors, hand out leaflets and perhaps even threaten to deselect MPs.

The question for wavering Labour MPs will be whether what they trust more - their own connection with voters, or this potentially unbiddable party machine.