Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Britain's plan to raise minimum wage backed by review

Published 04/11/2019, 07:41
Updated 04/11/2019, 07:41
Britain's plan to raise minimum wage backed by review

Britain's plan to raise minimum wage backed by review

LONDON (Reuters) - Britain's plan to raise the minimum wage to two-thirds of median earnings, taking it to 10.50 pounds an hour, was endorsed by an independent review on Monday that found setting a floor on pay had a negligible effect on job creation.

Companies are now likely to see wage costs rise after next month's snap national election whatever the outcome.

Conservative Finance Minister Sajid Javid said in September he would increase the National Living Wage (NLW) to the new target by 2024, provided economic conditions allowed, and expand its reach to all workers over the age of 21, down from 25 now.

The opposition Labour Party said it would raise the minimum wage to 10 pounds an hour immediately if it wins power.

An independent review commissioned by the government from economics professor Arindrajit Dube of the University of Massachusetts Amherst examined the impact of minimum wages in Germany, the United States, Britain and other countries.

"Based on the overall evidence - with a special emphasis on the recent, high quality, evaluations of the NLW and other more ambitious policies internationally - my report concludes that there is room for exploring a higher NLW in the UK up to two-thirds of the median wage," he said. "It will also be important to empirically evaluate and recalibrate any such ambitious policy based on new evidence down the road."

Javid said, "The evidence is clear that our approach is the right one." 

But Labour said Javid's pledge "was an insult to our hard working people".

"It's a derisory offer which people will have to wait years for," Labour's finance spokesman John McDonnell said. "Labour will immediately introduce a real living wage of 10 pounds an hour for everyone 16 and over, outstripping every publicity stunt figure the Tories invent."

Latest comments

Yes, People deserve to be paid well. It took several years to achieve qualifications and experiences. Due to that effect, is £10 just the basic for those with or without qualifications and experiences? this need to be made clear in every aspect of public debate?
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.