Wages

Oral Answers to Questions — Wales – in the House of Commons at 11:30 am on 12 February 2014.

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Photo of Julie Elliott Julie Elliott Shadow Minister (Energy and Climate Change) 11:30, 12 February 2014

What assessment he has made of changes in real wages in Wales since 2010; and if he will make a statement.

Photo of Stephen Crabb Stephen Crabb The Parliamentary Under-Secretary of State for Wales, The Lord Commissioner of HM Treasury

Wales had seen the biggest increase in average earnings of all the regions and nations of the United Kingdom, with earnings increasing at twice the national average and more than twice the current rate of inflation. Wage levels are still not where we want them to be, but that is still positive news for Wales.

Photo of Julie Elliott Julie Elliott Shadow Minister (Energy and Climate Change)

Wales has the highest proportion of people earning less than the living wage, which is outrageous. What are the Government doing to tackle that problem?

Photo of Stephen Crabb Stephen Crabb The Parliamentary Under-Secretary of State for Wales, The Lord Commissioner of HM Treasury

My right hon. Friend the Chancellor of the Exchequer has already said where he wants to see the national minimum wage going, as conditions allow. We want to see a strong minimum wage that will benefit low-paid workers. One of the most important things we are doing is taking 130,000 of the lowest-paid people in Wales out of income tax altogether by increasing the personal allowance to £10,000, something the hon. Lady and her colleagues should very much support.

Photo of David Hanson David Hanson Shadow Minister (Home Affairs)

Does the Minister accept that wages in Flintshire have dropped dramatically since the election of the Conservative and Liberal Democrat Government and that the situation is not helped by cuts to child tax credits, by the bedroom tax or by other measures they are taking? Will he join my hon. Friend Ian Lavery this afternoon in his plan to introduce a Bill to scrap the bedroom tax?

Photo of Stephen Crabb Stephen Crabb The Parliamentary Under-Secretary of State for Wales, The Lord Commissioner of HM Treasury

If the right hon. Gentleman looks at the figures, he will see that the biggest destruction in real wage levels occurred under the last three years of the previous Labour Government, and we are still recovering from the economic trauma of that period. Wage levels are still not where we want them to be, but they are increasing in Wales, which is positive news for people on the lowest incomes.