Chancellor George Osborne has said that he supports a rise in the minimum wage to £7 per hour as proposed by the Low Pay Commission (LPC)
Osborne had previously opposed the idea of an above-inflation increase, claiming that such a rise would cost jobs, but did say that the government would support the conclusions of the LPC and the economic recovery means that the country can afford the rise.
However, others including Labour leader Ed Miliband, have argued that the lowest paid had seen the worst decrease in living standards since the 2008 financial collapse as the minimum wage had not risen in line with inflation over the last five years.
yesterday, Business Secretary Vince Cable today submitted the government’s final analysis on employment and the economy for the independent LPC, saying:
The National Minimum Wage is designed to strike a balance between protecting the low paid and making sure they can find work. But as the economy starts to recover, the benefits of growth must be shared fairly.
This is why last September I asked the independent Low Pay Commission what economic conditions would be needed to allow for significant rises in the National Minimum Wage without damage to employment.
I am keen to use their expertise to understand what economic conditions would be needed to allow for rises in the wages of the low paid.
