Reward Strategy

LATEST NEWS

SEARCH

LATEST NEWS

Minimum wage is leaving younger workers behind, warns TUC

The National Minimum Wage (NMW) risks leaving younger workers behind, the TUC has told the Low Pay Commission (LPC). 

Twitter LinkedIn

An increase to the minimum wage will come into force in April 2018, but the new top rate will only apply to workers over 25.

 

The TUC is calling for:

 

  • the top rate of the minimum wage to be extended to all workers aged 21 and above;
  • the rates for 16 to 20-year-olds to be increased; and
  • for more resources for enforcement to ensure the new higher rate is being paid to all who qualify.

 

According to TUC analysis, the slower growth of the 21-24 rate means the gap between the rate for over 25s has widened by more than £400 a year.

 

The TUC recently published research that claimed one in eight working people are skipping meals because they can’t afford to eat, and has also warned the LPC that the proposed rise in the NMW will not be enough to combat in-work poverty.

 

The TUC argues that with high levels of employment and record corporate profits, employers can afford a strong increase in the minimum wage, and that the LPC should be bold in its recommendation of a new rate to government.

 

TUC general secretary Frances O’Grady said: “Minimum wage pay rates aren’t increasing fast enough and the government’s target of £9 an hour by 2020 now seems a fantasy.

 

“Younger workers deserve to be treated fairly. Why are 21- to 24-year-olds getting less pay than their colleagues for the same work, when they face the same expenses as other adults and are highly productive?

 

“The minimum wage needs a serious boost in the coming years, especially for younger workers. With employment, the economy and earnings set to grow next year, employers will be able to afford a decent rise. And higher rates will need to be properly enforced to be meaningful.

 

“I’d also encourage more employers to adopt the real Living Wage standard. Not only will it be good for their workers, but to help attract and retain talent.”

Twitter LinkedIn
Add New Comment

You might also like

Government to lead pensions dashboard project

The Department for Work and Pensions (DWP) will now take the lead on developing the "pensions dashboard", allowing individuals to see all their savings through one portal.

Scottish Budget 2017 set for 14 December

Just as important as the UK Autumn Budget (22 November 2017) is the date for the Draft Scottish Budget.
Reward Strategy

Did you find our website useful?

Thank you for your input

Thank you for your feedback

reward-strategy.com - an online news and information service for the UK’s payroll, reward, pensions, benefits and HR sectors. reward-strategy.com is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Reward Strategy is committed to diversity in the workplace.
© Copyright Shard Financial Media Ltd