HC Deb 09 December 1980 vol 995 cc332-3W
40. Mr. Heddle

asked the Secretary of State for Employment what contribution wages councils are making towards reducing inflation.

Mr. Jim Lester

While a continuing falling rate of inflation is essential for economic recovery, it is doubtful whether the work of wages councils helps or hinders this trend.

Wages councils, which are independent of Government, set statutory minimum rates of pay for workers in the trades and industries they cover. These rates are determined by representatives of the trade with the help of independent members. The rates are comparatively low and in practice many employees earn more than the minimum. However, the earnings of some low paid workers are underpinned by the minima and to that extent their wages may be higher than they would be in the absence of statutory minimum rates.