Guy Opperman: the Conservative case for a living wage

For too many people in our society, a hard day’s work no longer means a fair day’s pay.

As a Conservative MP, I believe that lower taxes stimulate growth and jobs, that smaller government is invariably better government and that governments must “ensure that work always pays” by making sure those in work are better off than those on benefits. I also believe in hard work. Yet, for too many people in our society, a hard day’s work no longer means a fair day’s pay.

Ever since the financial crash of 2008, the topic of “pay” has been dominated by the pay of those at the top. From golden hellos to golden handshakes, the discussion has often ignored those at the bottom. I sit on the advisory board of the High Pay Centre, alongside the Green MP, Caroline Lucas, and the TUC general secretary, Frances O’Grady. At the High Pay Centre, we have been making the case for corporate responsibility and pay restraint in the boardroom. It is now time for us to make the case for fairer pay at the bottom, too.

Britain is a country in which some workers earn so little that the government has to step in and provide aid. That is the system of tax credits we have; a subsidy by any other name and a £4bn one at that. How and why did we let it become acceptable for a full-time job not to pay enough to live on? The living wage isn’t just a wonkish idea – it’s the political world catching up with many Britons’ reality.

When the national minimum wage was adopted in 1998, many were sceptical. The fear was that it might hit the number of jobs available. There is ample evidence to show this is not the case. For instance, in 2012 the Institute for Social and Economic Research at the University of Essex studied the minimum wage and “found almost no evidence of significant adverse impacts on employment”. Today, the minimum wage is supported by all three mainstream parties and rightly so. Yet, for many, the minimum wage does not represent a fair wage.

There are some who have the same scepticism about the living wage – that it could penalise business and hold back growth. It may just be the old socialist in me but when did it become a hindrance rather than a duty for a business to look after its employees? The days of William Armstrong and Joseph Rowntree building houses for their workers and ensuring a decent standard of living may belong in a bygone age but surely some of those principles should still apply?

Some businesses already embrace the principle. In the US, the wholesale retail giant Costco has broken the mould: it pays its staff $11.50 an hour (£7.50), compared to the federal minimum wage of $7.25 (under £5). Costco’s chief executive, Craig Jelinek, made the point succinctly: “We know it’s a lot more profitable in the long term to minimise employee turnover and maximise employee productivity, commitment and loyalty.”

Businesses and organisations that have committed to paying the living wage include everyone from the big corporate beasts such as Deloitte and Barclays to Aquila Way, a housing association in Gateshead, north-east England. I have met with some of these accredited firms and they all talk of improved morale and productivity. One firm increased staff retention in one department by 65 per cent.

If those on the right won’t listen to the arguments of an old left-winger such as me, then, at the very least, they should listen to the HR director of Barclays, Dominic Johnson, who says “it makes sense for business”. The living wage doesn’t just work for business, it makes sense for the government, too. IPPR and the Resolution Foundation have found that even if only those employers that could easily afford to – the so-called “non-low-wage employers” – paid the living wage, the savings to the Treasury each year would be in the hundreds of millions. This would be the result of increased tax receipts, increased National Insurance contributions and savings on benefits such as tax credits.

Yet even enthusiasts have to accept that there remains a lack of detailed analysis of the effects of a living wage on individual sectors. I will be working hard to ensure that the government takes seriously the conclusions of the Living Wage Commission, chaired by John Sentamu, the Archbishop of York. It is vital that we monitor the economic effects of the living wage and demonstrate the benefits and the negatives of paying a living wage.

David Cameron was right when he said that here “is an idea whose time has come”. The living wage started off as a belief and became a campaign. It is now time for us in Westminster to return to our constituencies and make the case for our individual businesses to start paying the living wage.

Guy Opperman is the Conservative MP for Hexham

A London bus. Photograph: Getty Images.

This article first appeared in the 12 August 2013 issue of the New Statesman, What if JFK had lived?

Photo: Getty
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Is Britain about to leave the European Union?

A series of bad polls have pro-Europeans panicked. Are they right?

Is this what Brexit looks like? A batch of polls all show significant movement towards a Leave vote. ORB, a phone pollster, has Leave up four points to 46 per cent, with Remain’s leave cut to four points. ICM’s online poll has Leave up three points, putting Brexit ahead of Remain by 52 per cent to 48 per cent once don’t-knows are excluded. ICM’s phone poll shows Leave up six points, a Brexit lead of three points.

That two phone polls are showing advances for Leave are particularly significant, as telephone polling has tended to show lower figures for Brexit. There is a lively debate over which method, phone or online, is likely to be more effective at predicting the referendum, although no-one knows for certain at the present time.

In any case, whether on the telephone or the Internet, the latest polls have pro-Europeans worried, and Brexiteers jubilant. Who’s right?

There are reasons to start trusting the polls, at least as far as voter ID is concerned

So far, the performances of the political parties in local elections and by-elections has been about par with what we’d expect from the polls. So the chances are good that the measures taken post-2015 election are working.

Bank holidays are always difficult

I would be deeply cautious of reading too much into three polls, all of which have been conducted over the bank holiday weekend, a time when people go out, play with their kids, get wasted or go away for a long weekend. The last set of bank holiday polls gave Ed Miliband’s Labour party  large leads, well outside the average, which tended to show the two parties neck-and-neck.

Although this time they might be more revealing than we expect

One reason why the polls got it wrong in 2015 is they talked to the wrong type of people. The demographic samples were right but they were not properly representative. (Look at it like this – if my poll includes 18 actors who are now earning millions in cinema, I may have a representative figure in terms of the total number of Britain’s millionaires – but their politics are likely to be far to the left of the average British one percenter, unless the actor in question is Tom Conti.)

Across telephone and online, the pollsters talked to people who were too politically-motivated, skewing the result: Ed Miliband’s Labour party did very well among young people for whom Thursday night was a time to watch Question Time and This Week, but less well among young people for whom Thursday is the new Friday.  The polls had too many party members and not enough party animals.

But the question no-one can answer is this: it may be that differential turnout in the European referendum means that a sample of hyper-politicos is actually a better sample than an ordinary poll. Just as the polls erred in 2015 by sampling too many political people, they may be calling the referendum wrong in having too many apolitical people.

These three polls aren’t the scariest for Remain released today

IpsosMori released a poll today, taken 15 days ago and so free from any bank holiday effect, without a referendum voting intention question, but one taking the temperature on which issues the British public believe are the most important of the day.

Far from growing more invested in the question of Britain’s European Union membership as the campaign enters its terminal phase, concern about the European Union has flatlined at 28 per cent – within the margin of error of last month’s IpsosMori survey, which put Britain at 30 per cent. The proportion who believe that it is the biggest single issue facing Britain today also remains static at 16 per cent. Evidence of the high turnout necessary to avert Brexit seems thin on the ground.

Pro-Europeans should be further worried by the identity of the groups that are concerned about the European Union. Conservative voters, the over-65s and people from social grades A (higher managerial, administrative and professional workers) and B (intermediate managerial, administrative and professional workers), are more concerned about the European Union than the national average. The only one of those three groups that is more likely to favour Remain over Leave are ABers, while Conservative voters and the over-65s are likely to vote for Brexit over the status quo.

Among the demographics who are least concerned about the European Union, the only pro-Brexit group that is significantly less concerned about EU membership than the national average are people from social grades D (semi-skilled and unskilled manual workers) to E (state pensioners, casual workers and jobseekers). The other groups that are least concerned with the European Union are people who live in urban areas and people aged from 18 to 24, the two most pro-European demographics.

The prospects of a Brexit vote are rather better than the betting odds would suggest. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.