Thursday, 16 January 2014

Liberal Democrats And The Minimum Wage

There are reports that the Low Pay Commission is to recommend an above inflation increase to the National Minimum Wage. The Conservatives are seeking to claim credit for prospective increases.

The National Minimum Wage is currently set at £6.31 compared to £5.93 for those aged 21+; £5.03 compared to £4.92 for those over 18.

The ‘Living Wage’ is said to be £7.65 per hour outside of London, £8.80 inside.

Liberal Democrats at the last election stood on a platform of reducing taxation for low earners- the Conservatives prioritised tax cuts for the wealthy, and Labour are the party that abolished the 10p tax rate.

Vince Cable wrote to the Low Pay Commission in August to ask them to consider how the minimum wage could be increased further, including looking at the structural factors economy that limit how far it can be raised.

Labour may be the party who introduced the minimum wage, but showed how little they care for the low paid when Gordon Brown abolished the 10p tax rate which doubled the tax on the lowest paid.