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Real Living Wage

29 Aug


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“Britain needs a Pay Rise” says Jim Fitzpatrick

August 29, 2017 | By | No Comments


High wages can drive high productivity; but under the Conservative Government, wages in London fell by 1.2% per year in real terms compared to a rise of 0.8% from 2002 to 2010.

Britain needs a pay rise. But under the Tories, workers have suffered a pay cut. Average real wages and productivity have stagnated.

To boost productivity requires investment in skills, infrastructure, R&D, access to finance by firms and a range of other factors.

But there is evidence raising wages helps raise productivity too.

This is because it acts as a spur to firms to invest in new technology and training, boosting productivity and maintaining profitability. It also helps to reduce turnover of workers, motivate staff and foster loyalty to the firm, again helping raise productivity.

While wages increased consistently under the last Labour government, they have stagnated under the Tories and the evidence shows no sign of recovery. Here in Tower Hamlets, under a Labour government, wages grew by 0.8%, in real terms, between 2002 and 2010. But since the Conservatives came to power in 2010, fell 1.2%, in real terms.

Labour would act to boost the wages of workers, including the introduction of a £10 Real Living Wage by 2020. To boost productivity and help the economy, we must boost workers’ wages.

Rebecca Long-Bailey, Shadow Secretary of State for Business, Energy and Industrial Strategy, said:

“It is a sign of the Government’s complete economic failure that productivity and real wages are lower now, than 2007.

“Raising productivity is a complex issue and will involve measures which include increasing private and public investment in skills, capital and R&D, access to finance for firms. But boosting wages is key too. Higher wages act as a spur for firms to invest in new technology and skills so as to become more productive and maintain profitability.

“Labour plans to take measures to boost wages, including the £10 an hour minimum wage by 2020.”

Jack Dromey, Shadow Minister for Labour, said:

“Britain needs a pay rise. Our economy and our country cannot succeed on low wages and low productivity.

“The Tories have let Britain and British workers down. Under the last Labour government, wages went up year-on-year. However under the Tories, wages have declined in real terms.

“The evidence is clear – Britain will only succeed in the global marketplace as a high-wage, high-productivity, high-quality country, with Labour in government.”

Jim Fitzpatrick, MP for Poplar and Limehouse, said:

“Labour introduced the minimum wage in 1999- the Tories voted against it. They said it would cost jobs and damage the economy but unemployment fell and the economy grew stronger.

“Low pay for working families means more children grow up in poverty, which affects their mental and physical health and limits their chances at school. This in turn has huge negative impact on the economy and one of the many reasons why I fully support a £10 Real Living Wage.”

31 Jul


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Jim Fitzpatrick reveals impact of Child Poverty in Tower Hamlets

July 31, 2017 | By | No Comments

15,760 children will go hungry in Tower Hamlets over the summer holidays as they will not be able to access the free school meal they were entitled to during term time.

Across the London there will be a total of 212,238 children going hungry without their free school meal, and a total of 700,000 children growing up in poverty will be at risk of going hungry over the summer.

New Trussell Trust data shows increasing reliance on food banks during the summer, with 47% of food parcels that went to children going to primary school aged children.

Across London, hundreds of thousands of children are at risk of going hungry over the holidays. There will be a total of 700,000 children at risk of going hungry this summer across the city, as they are growing up in poverty and their families may not have the money they need to make sure the children are fed.

Real wages are falling in real terms as inflation rises, which will leave more children at risk of going hungry.

Commenting on the statistics Jim Fitzpatrick, Labour MP for Poplar and Limehouse said:

“It is unacceptable that in 2017 so many children are at risk of going hungry in our community. The last Labour government I was a part of lifted 1 million children out of poverty- one of our proudest achievements. Our ambitious plan was to eliminate child poverty by 2020 but instead, under the Tories, it’s at a seven-year high.

“Tower Hamlets is the worst affected area in London- over 15,000 children will no longer receive the free school meal they were eligible for during term time.

“Labour showed what can be achieved and only Labour will do what is required. Every child deserves to be well fed regardless of their background, and we will introduce a Real Living Wage of £10 an hour to ensure that every family is able to make ends meet.”

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Jim Fitzpatrick MP