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 shadow minister for women and equalities.

Photo: Getty Images
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The buck doesn't stop with Grant Shapps - and probably shouldn't stop with Lord Feldman, either

The question of "who knew what, and when?" shouldn't stop with the Conservative peer.

If Grant Shapps’ enforced resignation as a minister was intended to draw a line under the Mark Clarke affair, it has had the reverse effect. Attention is now shifting to Lord Feldman, who was joint chair during Shapps’  tenure at the top of CCHQ.  It is not just the allegations of sexual harrassment, bullying, and extortion against Mark Clarke, but the question of who knew what, and when.

Although Shapps’ resignation letter says that “the buck” stops with him, his allies are privately furious at his de facto sacking, and they are pointing the finger at Feldman. They point out that not only was Feldman the senior partner on paper, but when the rewards for the unexpected election victory were handed out, it was Feldman who was held up as the key man, while Shapps was given what they see as a relatively lowly position in the Department for International Development.  Yet Feldman is still in post while Shapps was effectively forced out by David Cameron. Once again, says one, “the PM’s mates are protected, the rest of us shafted”.

As Simon Walters reports in this morning’s Mail on Sunday, the focus is turning onto Feldman, while Paul Goodman, the editor of the influential grassroots website ConservativeHome has piled further pressure on the peer by calling for him to go.

But even Feldman’s resignation is unlikely to be the end of the matter. Although the scope of the allegations against Clarke were unknown to many, questions about his behaviour were widespread, and fears about the conduct of elections in the party’s youth wing are also longstanding. Shortly after the 2010 election, Conservative student activists told me they’d cheered when Sadiq Khan defeated Clarke in Tooting, while a group of Conservative staffers were said to be part of the “Six per cent club” – they wanted a swing big enough for a Tory majority, but too small for Clarke to win his seat. The viciousness of Conservative Future’s internal elections is sufficiently well-known, meanwhile, to be a repeated refrain among defenders of the notoriously opaque democratic process in Labour Students, with supporters of a one member one vote system asked if they would risk elections as vicious as those in their Tory equivalent.

Just as it seems unlikely that Feldman remained ignorant of allegations against Clarke if Shapps knew, it feels untenable to argue that Clarke’s defeat could be cheered by both student Conservatives and Tory staffers and the unpleasantness of the party’s internal election sufficiently well-known by its opponents, without coming across the desk of Conservative politicians above even the chair of CCHQ’s paygrade.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.