Labour plans 'would give one in four workers a pay rise'
2 min read
Labour's pre-election pledge to boost the living wage to £10 an hour would lead to just under a quarter of British workers getting a pay rise, new analysis by the party claims.
Shadow Business Secretary Rebecca Long-Bailey said the “stagnation” of real wages needs “imaginative” measures, and said her party's plans to hike the minimum wage for all adults would see 23% of UK workers better off.
And Labour say under the Conservatives the minimum wage could be even lower than forecast by 2020 after they “watered down their commitment” to boost pay in their election manifesto.
Their analysis suggests that around 40% of workers would benefit from the plan in parts of the UK, while highlighting forecasts that suggest the previously predicted £9 per hour target by 2020, is to fall short at £8.75 per hour.
The party also highlight the OBR’s projection that the National Minimum Wage for 21-24 year olds will reach just £7.75 per hour for 21-24 year olds by 2020.
The pledge to abolish the lower youth rate, with everyone over 18 entitled to the £10 wage, would make 21-24 year olds currently earning the National Minimum Wage better off by over £4,500 in 2020, Labour claim.
On top of that, full-time employees currently earning the Government’s National Living Wage would be better off by over £2,500 in 2020.
Ms Long-Bailey said: “The stagnation of real wages currently being experienced is unprecedented since at least the Second World War.
"We must take bold and imaginative measures to tackle low pay. One crucial step in this direction is to raise the Minimum Wage to the level of the Living Wage, expected to be at least £10 per hour by 2020 – for all workers aged 18 or over.
“People should be rewarded for a full day’s work and need the dignity that comes with decent wages. Britain needs a pay rise and only a Labour government can deliver one.”
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