Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Low Pay Commission should encourage firms to voluntarily pay the living wage, says Liz Kendall

The body would not have statutory powers, however

Jon Stone
Thursday 25 June 2015 11:49 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The Government’s Low Pay Commission should be given responsibility for promoting the living wage to business, a Labour leadership candidate has said.

Liz Kendall said she would extend the remit of the body, whose main current job is to set the legal national minimum wage.

Ms Kendall however said the commission would not have “statutory” powers to enforce the living wage and that it would have to convince business to provide increases voluntarily.

“The Low Pay Commission is one of the best examples of what government can achieve when it brings together businesses, employees and trade unions to work in partnership,” she told an event in London on Wednesday evening.

“Rather than tackling the full range of issues around low pay, it is focused on setting the level of the national minimum wage. We must now look at increasing pay beyond that.

“As Labour’s next Prime Minister I would extend the legal remit of the Low Pay Commission to work with employers, unions and civil society to identify practical, non-statutory ways to move wages towards the living wage, sector by sector.

“Giving the Low Pay Commission this additional remit would protect its independence and mean the expertise and institutional support behind the minimum wage can support the living wage as well.”

Ms Kendall said she was particularly concerned about increasing low pay in the care sector, especially for workers who were women.

She said that “one of the first areas” she would take action on would be the social care sector and that the move would help “tackle the inequalities in power, wealth and opportunity that scar our country and hold us all back”.

At the last election Labour pledged to give tax rebates to firms that paid their workers the living wage in the first year of a Labour government, while publicly listed firms would have to report on whether they paid the wage.

The party also said it would increase the minimum wage to £8 an hour by 2020, somewhat below the living wage rate.

Ms Kendall is one of four candidates standing for the Labour leadership, the others being Andy Burnham, Yvette Cooper, and Jeremy Corbyn.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in