Jim Dobbin backs plan to tackle low pay

Jim Dobbin MP

Jim Dobbin MP has backed Labour’s plans to raise wages for thousands of low-paid workers in Heywood and Middleton.

Labour has vowed introduce Make Work Pay contracts that will "help businesses raise wages", and help the next Labour Government "cut social security bills for the taxpayer".

Firms that commit to paying their employees the living wage, currently £8.80 in London and £7.65 elsewhere, in the first year of the next Parliament will be offered a 12 month tax rebate of up to £1,000 for each individual worker that receives a pay rise.

Labour says the money would be funded directly from increased income tax and National Insurance revenues. Additional savings in lower tax credits and benefit payments, as well as increased tax revenues in future years, will cut social security bills and help pay down the deficit.

Mr Dobbin said: “I’ve spoken to hard-working people in Heywood and Middleton who’ve told me that they go to work and do the right thing, yet they are struggling to pay their bills.

"It can’t be right that we’ve now reached the point where more of the people bringing up families in poverty are in work than out of work.

"We need to make sure work always pays which is why I’m backing Labour’s plans to encourage more firms to pay their employees the living wage. This is a positive way of helping hard-working people on low pay and will also help local families cope with the rising cost of living.”