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?

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What can we learn from Liam Fox's book? (Or, at least, from the first chapter)

How Liam Fox helps us face the new era, using orcs, Socrates and his knowledge of general medicine.

It’s a weird and wacky world, people, and we reach for political theory as a way of understanding the myriad linkages – ideological, emotional – between collectives of all sorts and individuals. Reach for political theory, and more importantly political history, for surely it can only be through an understanding of history that we can hope to reach into the shaken-up snow-globe and make sure the itty-bitty little snowman doesn’t get blown to buggery by the winds of change? For profundities such as the above I am indebted, latterly, to Dr Liam Fox, the erstwhile defence minister and currently Theresa May’s International Trade supremo – latterly because I’m primarily indebted to civil servants in his new bailiwick who have revealed to Private Eye that Dr Fox has insisted that they buy his 2013 globalisation excursus, Rising Tides: Facing the Challenges of a New Era, if they want to do just that.

The Eye snarked that Dr Fox’s book had sold just 1,876 copies thus far, but in fact that’s a perfectly respectable sale for a title by a contemporary politician. Ask the residents of Southmoor in Essex how they feel about instantly remaindered political books – half the village disappeared last year into a sinkhole that opened up when thousands of copies of On a Clear Day by David Blunkett, which had been buried in an adjacent landfill, reached a critical point of putrefaction. Some might describe this as ironic, others as justice. Anyway, inspired by Dr Fox’s self-conviction, and wanting to know what we can expect from the man who will be guiding our destiny as a trading nation through the savage cross-currents in the coming years, I hied me to the Amazon cloud reader to read the free sample.

Some might say this was the act of a hack who cares naught for the intellectual property of other writers, and is not prepared to put in the hard work required to understand the full compass of Dr Fox’s thinking, but my view is that the man himself will sympathise with my raw intellectual hunger. So pithily apodeictic (though simultaneously lyrical) is his own writing, that I came away from the free sample richer, wiser, and well equipped to advance his ideas to New Statesman readers – for which I believe both he, and you, will be grateful.

So, I mentioned history earlier, but let the man himself tell you how important it is to him, and us. “I am not one of those who believes that history repeats itself in the most literal sense,” Dr Fox writes, “but I do believe that the types of problems we face are repeated in time and realm.” True, it’s hard to think which “those” he might be thinking of, beyond the character of Phil Connors in Groundhog Day, but otherwise I think this is positively seer-like stuff.

Dr Fox’s use of the slightly archaic “realm” in the above may have given you pause for thought. Masterful prose writer that he is, he is softening his readers up for what comes next: a quotation from that great chronicler of humankind’s history, J R R Tolkien. And this, if I interpret it rightly, suggests that when trying to understand the motivation of jihadists, our best guide is the psychology of, um, orcs. But the history of Middle Earth alone cannot supply wisdom – neither for concerned citizens nor for the elves who lead them. For that, we require additional professional expertise, and Dr Fox is once again our man. Like the great Socrates, upon whose method he has undoubtedly based his own, Dr Fox teases out the technê of statecraft by analogy with his own illustrious medical career, in which: “The first task was to gather all the data possible about the patient and their complaint.”

Yes! How true this is. It makes me think of a hypothetical patient (or politician) whose complaint is that although he once held one of the high offices of state – one that requires of its incumbent great probity and discretion – he nonetheless attended many important meetings accompanied by an adviser who had no security clearance, and who had extensive links to lobbyists for defence contractors. Further, it makes me hypothesise that this patient (or politician), set up a “charity” to fund the activities of this “adviser”, which in turn had to shut down because of a mephitic odour, which – were I to have Dr Fox’s training – I’d probably diagnose as symptomatic of rot. It’s true that Dr Fox cautions his readers to “skip over any detail which seems excessive”, but then again: “I believe history brings some context to the subjects covered, something I think is often missed in contemporary debate.” Yes; and if it were the case that the same hypothetical patient had overclaimed the most expenses of any Tory frontbencher – including the rent on a flat used by the aforementioned special adviser – well, that would seem to provide some context for understanding how he’d function were he, once more, to hold a high office of state.

These, it seems, are the sorts of things being missed by contemporary debate. It’s as if the result of the EU referendum in June hit some sort of hard reset in the British political system: everything was turned off and turned on again, and in the process we have indeed forgotten our history, and so, like Phil Connors, we are doomed to repeat it. Thank the Lord for Dr Fox, whose civil servants will by now have absorbed their new boss’s forensic credo. When he was a general practitioner, having dealt with his own patients’ history and placed their symptoms in the right context: “The third task was to determine the course of treatment in the light of best accepted practice and the most up-to-date information available.”

Hear, hear! Given that the most up-to-date information available is that our hypothetical patient-cum-politician is still mired in the rising tide of his own bullshit, the most advisable course of treatment would appear to be euthanasia. After all, Dr Fox isn’t one of those who believes that history literally repeats itself – so a second resignation is out of the question. 

Will Self is an author and journalist. His books include Umbrella, Shark, The Book of Dave and The Butt. He writes the Madness of Crowds and Real Meals columns for the New Statesman.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump