§ 41. Mr. Kirkwoodasked the Chancellor of the Exchequer if he will make a statement on his policy towards differentials between high and low earners in the light of the low pay unit report published on 9 March, a copy of which has been forwarded to him.
§ Mr. MacGregorDifferentials are necessary to motivate skilled workers and to encourage people to train for skilled and professional jobs, requiring qualifications. But since this Government took office there has been a general rise in living standards for those below average earnings as well as for those above average earnings. Between 1978–79 and 1987–88 the real take home pay of a married man on average earnings is expected to rise 22½ per cent. and a married man on ½ average earnings 18 per cent.