Economy, Employment and Skills, Jobs

Minimum wage worth less now than in 2004

Minimum wage worth less now than in 2004

A report published by the Think Tank, the Resolution Foundation has found that the minimum wage is worth less now than it was in 2004.

The report found that despite the increase of the minimum wage in October from £6.08 to £6.19, workers living on a minimum wage income are worse off in real terms.  The Resolution Foundation outlines that the inflation has been increasing at a greater rate than minimum wage and increases in October mark the third successive increase below the rate of inflation.

Commenting on the findings Professor Manning of the London School of Economics stated:

Given the scale of the challenge now facing living standards, it might be time to think about more radical options for reform”. 

For example, we could consider introducing a higher minimum wage for workers aged over 30 who are more likely to have families to support, or for London and the South East. 

A spokesperson for the Department of Business Innovation and Skills outlined that while the minimum wage offered an important role of “protection” for the lowest paid workers, it is important that they are not priced out of the Labour Market.

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