Labour is the only party that can be trusted to strengthen the minimum wage

The Tories and the Lib Dems' past opposition to the minimum wage shows why we should be sceptical of their warms words on low pay.

One of the questions I like to ask when I'm interviewing candidates to work in my office is what they think is Labour's greatest achievement. The answer I most often get is the National Minimum Wage.
 
We are right to be proud of it. When Labour introduced the minimum wage in 1999, it made an immediate difference to workers on the lowest pay. Women in particular benefited. And thousands of decent employers all over the country were pleased too; it tackled exploitative and unscrupulous competitors using low pay to undercut costs.

It's easy to forget, now that all the main political parties claim to support it, just how bold and radical the introduction of the minimum wage was. But when it was introduced by Labour, the Tories were outright opposed. They said that it would cripple business, and would destroy thousands of jobs.
Of course, that simply wasn't the case. Our careful approach when in government, working in partnership with employers and employees, maintaining the right balance between wage growth and the impact on employment, ensured its success.

The Lib Dems, too, are Jonny-come-lately's to the value of the minimum wage. In 2003, Vince Cable said increases in its level set "a dangerous precedent". So why would we believe his warm words about it last week? But perhaps the most convincing proof of the Cameron government's lack of enthusiasm is that the real value of the minimum wage has declined by 5% since 2010.

Labour is the only party with a track record of bold action on low pay, the only party that can be trusted to boost and strengthen the minimum wage. And it's action that is desperately needed. In 38 out of the 39 months that David Cameron's been in Downing Street, average wages have fallen; people are on average £1,500 worse off. Low pay is contributing to the crisis in living standards facing Britain.

So, building on the successful approach we used in government, Ed's commitment today is that Labour will strengthen the minimum wage. Fair pay is central to Ed's vision of a different kind of economy, one in which both workers and business play their part. The only way we're going to build a strong economy is to make sure it works for working people. That means competing on high skill, high wage jobs.

The minimum wage needs to rise faster than it has in recent years so that it catches up to where it was in 2010. There is also evidence that the minimum wage puts very little pressure on employers in sectors that could afford to pay more. Analysis by IPPR and the Resolution Foundation has shown that increasing the minimum wage to the level of the living wage would cost large employers in sectors like finance, construction and computing less than one half of one per cent of their total wage bill. Around one million workers would see their pay rise.

Of course, it's right that we work closely with business to ensure we get the detail right. I'm pleased that Alan Buckle, Deputy Chair of KPMG International, has agreed to lead a review to look at how to strengthen the powers of the Low Pay Commission. We must also have effective enforcement - that is why Labour has committed to increasing the fines for non-payment of the minimum wage and to giving local authorities a role in enforcement alongside HMRC.

We're right to take pride that it was a Labour government that introduced the minimum wage. We are right to be proud of the difference it's made. The next Labour government will strengthen the minimum wage.

I'm proud Ed has promised today that we will take action. It is Labour policies that will tackle the low pay that is driving the cost of living crisis and holding back growth.

 
Kate Green is Labour MP for Stretford and Umston and shadow equalities minister
 
The real-terms value of the minimum wage has declined by 5% since 2010. Photograph: Getty Images.

Kate Green is Labour MP for Stretford and Umston and was shadow minister for women and equalities before resigning in June 2016.

Lindsey Parnaby / Getty
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The public like radical policies, but they aren't so keen on radical politicians

Around the world, support for genuinely revolutionary ideas is strong, but in the UK at least, there's less enthusiasm for the people promising them.

You’re probably a getting a little bored of the litany of talking head statistics: trust in elected officials, parliament, the justice system and even democracy itself has been falling steadily for years and is at record lows. Maybe you’ve seen that graph that shows how people born after 1980 are significantly less likely than those born in 1960 to think that living in a democracy is ‘essential’. You’ve possibly heard of the ‘Pasokification’ of the centre-left, so-named the collapse of the once dominant Greek social democratic party Pasok, a technique being aggressively pursued by other centre-left parties in Europe to great effect.    

And so, goes the logic, there is a great appetite for something different, something new. It’s true! The space into which Trump et al barged leaves plenty of room for others: Beppe Grillo in Italy, Spanish Podemos, Bernie Sanders, Jean Luc Melanchon, and many more to come.

In my new book Radicals I followed movements and ideas that in many cases make someone like Jeremy Corbyn seem positively pedestrian: people who want to dismantle the nation state entirely, use technology to live forever, go off grid. All these ideas are finding fertile ground with the frustrated, disillusioned, and idealistic. The challenges of coming down the line – forces of climate change, technological change, fiscal crunch, mass movements of people – will demand new types of political ideas. Radical, outsider thinking is back, and this does, in theory at least, offer a chink of light for Corbyn’s Labour.

Polling last week found pretty surprising levels of support for many of his ideas. A big tax on high earners, nationalising the railways, banning zero hours contracts and upping the minimum wage are all popular. Support for renewable energy is at an all-time high. According to a recent YouGov poll, Brits actually prefer socialism to capitalism, a sentiment most strongly held among younger people.

There are others ideas too, which Corbyn is probably less likely to go for. Stopping benefits entirely for people who refuse to accept an offer of employment is hugely popular, and in one recent poll over half of respondents would be happy with a total ban on all immigration for the next two years. Around half the public now consistently want marijuana legalised, a number that will surely swell as US states with licenced pot vendors start showing off their dazzling tax returns.

The BNP effect used to refer to the problem the far-right had with selling their ideas. Some of their policies were extremely popular with the public, until associated with the BNP. It seems as though the same problem is now afflicting the Labour brand. It’s not the radical ideas – there is now a genuine appetite for those who think differently – that’s the problem, it’s the person who’s tasked with delivering them, and not enough people think Corbyn can or should. The ideal politician for the UK today is quite possibly someone who is bold enough to have genuinely radical proposals and ideas, and yet appears extremely moderate, sensible and centrist in character and temperament. Perhaps some blend of Blair and Corbyn. Sounds like an oxymoron doesn’t it? But this is politics, 2017. Anything is possible.

Jamie Bartlett is the head of the Violence and Extremism Programme and the Centre for the Analysis of Social Media at Demos.

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