low pay commission

The nature of low pay has changed since the introduction of the minimum wage, 15 years ago. The chart below from the report shows that extreme low pay – earning less than half the median wage – has been nearly eradicated. But low pay – earning less than two-thirds of the median wage – is as prevalent as in the late-1990s.

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The astute observer will have noticed that a policy promising to detoxify the Conservative brand, improve living standards, and reduce the benefits bill, is likely to have some problems, regardless of what form the rise takes. The biggest employers of low wage labour are hardly clamouring to support a living wage. A higher minimum wage is not a direct substitute for tax credits and in-work benefits. But there is a growing consensus that the minimum wage could and should be increased – and the Conservatives seem to preparing a gran pf this traditional Labour territory.  Read more