Philip Hammond plans world’s highest minimum wage | Society | The Guardian


Philip Hammond is seriously considering a major increase to the minimum wage as he seeks to secure a legacy of ending low pay, it has emerged.

Several sources familiar with the chancellor’s thinking told the Observer they believed he was pushing to look at the “ambitious end” of what would be possible without damaging Britain’s employment levels, suggesting he is contemplating going further than any developed nation.

A proposal under discussion would see the minimum wage pushed up to 66% of median earnings, meeting the Organisation for Economic Co-operation and Development’s definition of low pay. It would allow the chancellor to say he had set a course to end low pay in Britain. The chancellor held a meeting with Frances O’Grady, general secretary of the Trades Union Congress (TUC), last week, and he is understood to be meeting other union leaders at a round table this week. One government source said: “The chancellor is very concerned about poverty and sees this as one avenue of tackling it.”

 

Source: Philip Hammond plans world’s highest minimum wage | Society | The Guardian

One thought on “Philip Hammond plans world’s highest minimum wage | Society | The Guardian

  1. This would appear to be good news, but if it comes to pass some employers will not be able to fubdit without some rebalancing of their income.

    Not all employers are multi-nationals or even large employers. Many employers are small, some even only employer 1 or 2 people and without a massive increase in the income these small employers receive they would not be able to fund this rate of increase.

    In fact some Charities are dependent on Local Authorities for much of their income, such as Charities within the care sector and also Care Homes, Home Care agencies and those in Supportive Living. So if Philip Hammond is going to propose such an increase to the National Living Wage, there will need to be, not only, an end to austerity cuts to Local Authorities, but a massive increase to the Grants to these authorities. Not only for them to increase funding to the Charity/volunteer sector and the Care sector, but many other areas within these authorities, Public Health, Education amd many others.

    The health service will also need a massive increase in their funding.

    Then will will happen to the differentials in pay for to increase the lowest pay there will need to be increases to the pay differentials throughout the range of pay scales.

    I am not mentioning this to stop this increase in the National Living Wage, because this is long over due, but to show that one aspect can not be looked at without looking at all the other aspects.

    For many Governments are blinkered in their thought processes.

    Also Welfare Benefits will have to be increased accordingly, which would also be welcomed and is long before time.

    Like

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