Tag: wages

TUC: Ministers should boost wages, not slash taxes, in emergency budget

  • Union body says government must prioritise lifting workers’ pay over “bungs to big business and City bankers”
  • **New TUC analysis** shows real wages are down £100 a month compared to same period last year
  • “Don’t reheat failed Osborne-era policies”, TUC warns Chancellor

The TUC has today (Thursday) called on the Chancellor to bring forward an emergency budget that delivers for “working Britain”.

In a submission to the Treasury, the union body warns the government not to repeat the same mistakes of the “Osborne era” when pay and public services were slashed and huge tax breaks were given to big business.

The TUC says the priority for ministers must be to get wages rising across the economy and to fix the staffing crises plaguing hospitals, social care, education and other frontline services.

Pressure on wages

New analysis from the union federation shows that real wages down are down by over £100 a month compared to this time last year – a number that rises to £190 for public sector workers.

For the typical nurse this means a real-terms pay cut of £1,000 over the next year and a real-terms pay drop of £4,300 since 2010.

The TUC says rather than “handing out bungs” to corporations and City bankers the government should:

  • Bring forward inflation proof increases in the minimum wage, universal credit and pensions to October to help families through the cost-of-living emergency.
  • Get the minimum wage on a path to £15 an hour as soon as possible.
  • Give public service staff a real-terms pay rise that at least matches the rising cost of living and begins to restore earnings lost over the last decade.
  • Strengthen and extend collective bargaining across the economy, including introducing fair pay agreements to set minimum pay across whole sectors.
  • Impose a larger windfall tax on oil and gas companies that that are profiteering from UK families.
  • Make sure everyone pays their fair share of taxes by going ahead with increases in corporate tax, and equalising capital gains tax rates with income tax as a first step to fair taxes on wealth.

Speaking ahead of Friday’s emergency budget, TUC General Secretary Frances O’Grady said: “Friday’s mini budget is an acid test for this government. Are ministers on the side of working people, or more interested in handing out bungs to big business and City bankers?

“Tax cuts will do nothing to jumpstart the economy and will only line the pockets of the wealthy and companies like Amazon.

“When millions are struggling to make ends meet, the Chancellor should focus on getting wages rising across the economy – not helping out corporations.

“That means a £15 minimum wage as soon as possible, boosting universal credit and fair pay deals for workers across the economy.

“And it means ensuring those who’ve profited from this crisis pay their fair share – with a bigger windfall tax on oil and gas giants like Shell and BP, and new taxes on wealth.”

On the need to avoid repeating the mistakes of the past, Frances added: “We need a budget the delivers for working Britain – not more continuity conservatism.

“Kwasi Kwarteng mustn’t reheat the failed policies of the Cameron-Osborne government, which slashed pay, workers’ rights and public services.

“This pushed people into debt and locked families into years of declining living standards.

“After the longest wage squeeze in modern history, people can’t afford to tighten their belts any more.”

Rogue firms named and shamed for minimum wage breaches

Tesco, Superdrug and St Johnstone FC among culprits

  • 139 companies, including major household names, have short-changed their employees and have been fined
  • offending firms failed to pay £6.7 million to their workers, in a completely unacceptable breach of employment law
  • Business Minister Paul Scully says the list should be a ‘wake-up call’ to rogue bosses, as department relaunches naming scheme after 2-year pause

Almost 140 companies, including some of the UK’s biggest household names, are being named and shamed today for failing to pay their workers the minimum wage.

Investigated between 2016 and 2018, the 139 named companies failed to pay £6.7 million to over 95,000 workers in total, in a flagrant breach of employment law. The offending companies range in size from small businesses to large multinationals who employ thousands of people across the UK.

Preserving and enforcing workers’ rights is a priority for this government. While the vast majority of businesses follow the law and uphold workers’ rights, the publication of the list is intended to serve as a warning to rogue employers that the government will take action against those who fail to pay their employees properly.

This is the first time the government has named and shamed companies for failing to pay National Minimum Wage since 2018, following reforms to the process to ensure only the worst offenders are targeted.

Business Minister Paul Scully said: “Paying the minimum wage is not optional, it is the law. It is never acceptable for any employer to short-change their workers, but it is especially disappointing to see huge household names who absolutely should know better on this list.

“This should serve as a wake-up call to named employers and a reminder to everyone of the importance of paying workers what they are legally entitled to.

“Make no mistake, those who fail to follow minimum wage rules will be caught out and made to pay up.”

One of the main causes of minimum wage breaches was low-paid employees being made to cover work costs, which would eat into their pay packet, such as paying for uniform, training or parking fees.

Also, some employers failed to raise employees’ pay after they had a birthday which should have moved them into a different National Minimum Wage bracket.

Employers who pay workers less than the minimum wage have to pay back arrears of wages to the worker at current minimum wage rates. They also face hefty financial penalties of up to 200% of arrears – capped at £10,000 per worker – which are paid to the government. Each of the companies named today have paid back their workers, and were forced to pay financial penalties.

While not all breaches of minimum wage rules are intentional, it is the responsibility of all employers to ensure they are following the law. With this round, we are also publishing a short educational bulletin that summarises public guidance on paying workers and common reasons for underpayment – helping to ensure that workers are not short-changed in future.

National Minimum Wage Naming Scheme, Round 16: educational bulletin

The companies the government is naming today were served a notice of underpayment between September 2016 and July 2018, following investigations by HMRC.

Last month, the government announced a measured increase in National Living Wage and National Minimum Wage rates, which will come into effect from April 2021. Every worker is entitled to the National Minimum Wage, no matter their age or profession.

This is the full list of companies named for failing to pay the National Minimum Wage:

  • Tesco stores Limited, Welwyn Hatfield AL7, failed to pay £5,096,946.13 to 78,199 workers
  • Pizza Hut (U.K.) Limited, City of Edinburgh WD6, failed to pay £845,936.41 to 10,980 workers
  • The Lowry Hotel Limited, trading as The Lowry Hotel, Salford EC4A, failed to pay £63,431.51 to 99 workers
  • Doherty & Gray Limited, Mid and East Antrim BT42, failed to pay £43,470.16 to 128 workers
  • Independent Care & Support Ltd, Medway ME2, failed to pay £40,275.17 to 55 workers
  • Amber Valley Council for Voluntary Services, trading as Amber Valley Centre for Voluntary Services, Amber Valley DE5, failed to pay £37,346.46 to 104 workers
  • Premier Care Limited, Salford M27, failed to pay £31.198.61 to 407 workers
  • Hill Biscuits Limited, Tameside OL7, failed to pay £25,867.06 to 247 workers
  • Sendon Garage Services Limited, Lambeth SW8, failed to pay £24,869.52 to 2 workers
  • Natural Nails Beauty London Ltd, Haringey N15, failed to pay £15,265.58 to 4 workers
  • Superdrug Stores PLC, Croydon CR0, failed to pay £15,228.57 to 2222 workers
  • St Johnstone Football Club Limited (The), Peth and Kinross PH1, failed to pay £14,266.74 to 28 workers
  • Home Grown Hotels Limited, New Forest SO43, failed to pay £13,790.44 to 25 workers
  • Rebus Construction Ltd, Hart RH12, failed to pay £13,379.94 to 5 workers
  • Mrs Emma Hartley, trading as Whitehall Hairdressing, Leeds, failed to pay £12,882.14 to 2 workers
  • The Walshford Inn Limited, trading as The Bridge Hotel & Spa, Harrogate W1W, failed to pay £11,947.23 to 26 workers
  • Southern Health and Social Care Trust, Armagh City, Banbrige and Craigavon, failed to pay £11,285.34 to 269 workers
  • Müller UK & Ireland Group LLP, Shropshire TF9, failed to pay £10,702.11 to 54 workers
  • Dakota Forth Bridge Limited – Dissolved 20/03/2020, City of Edinburgh S70, failed to pay £10,236.50 to 4 workers
  • Pinnacle PSG Limited, City of London NW1, failed to pay £10,166.03 to 10 workers
  • Preystone Property Investments Limited, trading as Battlesteads Hotel and Restaurant, Northumberland NE48, failed to pay £9767.15 to 26 workers
  • Western Brand Poultry Products (NI) Ltd, Fermanagh and Omagh BT92, failed to pay £9,275 to 50 workers
  • Nahid Residential Limited, trading as Manor House Hotel, Guildford GU1, failed to pay £9,159.53 to 5 workers
  • Norfolk Coastal Pubs Limited, trading as The Golden Fleece, North Norfolk NR23 failed to pay £8,141.69 to 14 workers
  • Worldwide Foods (Birmingham) Limited, trading as Al-Halal Supermarket, Birmingham B10, failed to pay £8,062.88 to 1 worker
  • Eat Food Limited, trading as Albatta Restaurant, Colchester CO1, failed to pay £7,987.15 to 5 workers
  • G & J Properties Limited, Bolton BL7, failed to pay £7,858.16 to 1 worker
  • Adi’s Hand Car Wash Ltd – Dissolved 19/02/2019, Barking and Dagenham RM8, failed to pay £7,750.84 to 2 workers
  • South Eastern Health and Social Care Trust, Lisburn and Castlereagh BT16, failed to pay £7,564.66 to 193 workers
  • Discount Wallpapers Limited, trading as O’Neills Decorating Centre, Bolton WA12, failed to pay £7,446.14 to 11 workers
  • Sturgess & Thompson Limited, Leicester LE1, failed to pay £7,385.40 to 2 workers
  • Belfast Health and Social Care Trust, Belfast BT9, failed to pay £7,303.41 to 192 workers
  • Helio Leisure Limited, trading as Helio Fitness, Fylde FY3, failed to pay £7,298.69 to 26 workers
  • Northern Health and Social Care Trust, Antrim and Newtownabbey, failed to pay £6,900.72 to 146 workers
  • Hoar Cross Hall Limited, East Staffordshire OX7, failed to pay £6,651.94 to 26 workers
  • Renard Resources Limited, Westminster WC2E, failed to pay £6,492.95 to 484 workers
  • Imago @ Loughborough Limited ,Charnwood LE11, failed to pay £6,319.05 to 101 workers
  • Western Health and Social Care Trust, Derry City and Strabane, failed to pay £6,170.97 to 170 workers
  • Littlemoss Preservation Limited, Tameside M43, failed to pay £5,434.18 to 4 workers
  • Mr Phillip Brookman, trading as Phillip Brookman Decorator & Plasterer, Cardiff failed to pay £5,141.70 to 1 worker
  • O & H Electrical Limited, Torbay TQ2, failed to pay, £5,139.02 to 6 workers
  • Mr Jonathan Evans, trading as Jonty Evans Equestrian Activities, Gloucester, failed to pay £5,008.16 to 5 workers
  • SKL Professional Recruitment Agency Limited, trading as SKL Homecare, Hertsmere WD19, failed to pay £4,628.69 to 43 workers
  • Wigan Rugby League Club Limited, trading as Wigan Warriors, Wigan WN5, failed to pay £4,559.24 to 1 worker
  • Mr Blerim Bajrami, trading as Secure Hand Car wash, Cannock Chase, failed to pay £4,475.01 to 3 workers
  • Tring Park Day Nursery Ltd, Dacorum HP23, failed to pay £4,415.63 to 2 workers
  • Pet Charmer Ltd – Company in liquidation April 2019, trading as Wild Animal Adventures and Pet Mania, Stockton-on-Tees LS15, failed to pay £4,168.90 to 1 worker
  • WKW Partnership Limited, trading as Cairngorm Hotel, Highland KA21, failed to pay £4,057.00 to 7 workers
  • Mr Roan Bradshaw and Ms Joy Bradshaw, trading as First Glance, Lewisham, failed to pay £3,997.58 to 1 worker
  • Costco Wholesale UK Limited , Hertsmere WD25, failed to pay £3,747.52 to 58 workers
  • Gregg Little Testing Centre Limited, County Durham TS18, failed to pay £3,703.90 to 4 workers
  • Solent Build Group Limited – Company Status Liquidation 06/12/2018, Southampton SO51, failed to pay £3,676.33 to 1 worker
  • Blakerin International Holdings Limited, trading as Cumbria Park Hotel, Carlisle LA12, failed to pay £3,611.13 to 46 workers
  • Multitech Site Services Limited, Uttlesford CM6, failed to pay £3,294.52 to 1 worker
  • Dr Jaskaram Bains and Dr Bernie Chand, Hanwell Dental Practice, Unknown, failed to pay £3,072.25 to 5 workers
  • Byron Hamburgers Limited, Westminster W1D, failed to pay £3,062.03 to 77 workers
  • Nina’s Nursery (Davenport) Limited, Stockport SK2, failed to pay £3,058.20 to 18 workers
  • Walton Bannus Estates Limited, Harborough LE17, failed to pay £3,051.60 to 2 workers
  • Circus in Schools Limited – Notice of voluntary strike-off – Nov 17, Cornwall TR13, failed to pay £2,958.85 to 2 workers
  • KKM Enterprises Limited- Liquidation- 23/08/2019, trading as The Cleaning Company, Redbridge B77, failed to pay £2,876.68 to 4 workers
  • The Bobby Dhanjal Practice Limited, trading as Bobby Dhanjal Wealth Management, Blaby LE19, failed to pay £2,868.69 to 3 workers
  • Manor House Country Hotel Limited, Fermanagh and Omagh BT94, failed to pay £2,837.04 to 139 workers
  • Morden Estates Company Limited, Dorset BH20, failed to pay £2,761.45 to 43 workers
  • The Education Development Service Ltd, Telford and Wrekin TF4, failed to pay £2,520.40 to 2 workers
  • Mr Malcolm Gilmour and Mr David Gilmour, trading as Gilmour Bros, South Lanarkshire, failed to pay £2,446.58 to 3 workers
  • Storrs Hall Limited, South Lakeland BB1, failed to pay £2,402.23 to 3 workers
  • DCS&D Limited Heritage Healthcare, Darlington DL1, failed to pay £2,393.39 to 13 workers
  • Rainbow Room (East Kilbride) Limited, South Lanarkshire G74, failed to pay £2,378.77 to 15 workers
  • Mr Darran Vaughan, trading as VAS Car Sales, Newry, Mourne and Down, failed to pay £2,351.41 to 1 worker
  • Mr Gnanenran Arumugam, trading as Lavender Convenience Store, Cheshire East, failed to pay £2,335.88 to 1 worker
  • The Calderdale Community Childcare Company Ltd, Calderdale HX2, failed to pay £2,321.81 to 2 workers
  • Gzim Workshop Limited Valeting Car wash, Haringey N17, failed to pay £2,297.21 to 3 workers
  • Alaska Fast Foods Ltd – Dissolved 05/02/2019, trading as Freddy’s Chicken & Pizza, Hyndburn M21, failed to pay £2,180.93 to 7 workers
  • Tracy Hart, trading as Little Oaks Pre School, Dacorum, failed to pay £2,134.47 to 1 worker
  • Chi Yip Group Limited , Oldham M24, failed to pay £2,121.51 to 14 workers
  • Four Pillars Hotels Limited, Harrogate HG2, failed to pay £2,092.55 to 29 workers
  • Mr William Fleeson, trading as Rainbow Room International, Stirling, failed to pay £2,089.66 to 11 workers
  • D & D Decorators Limited, East Ayrshire KA3, failed to pay £2,080.35 to 1 worker
  • Kiddi Day Care Limited-Liquidation of the company commenced Feb 2019, trading as Blue Giraffe Childcare, Birmingham SA1, failed to pay £1,978.57 to 9 workers
  • Dessian Products Limited, Belfast BT12, failed to pay £1,885.00 to 1 worker
  • Crewe Hotel Trading Limited, trading as Holiday Inn Express Crewe, Cheshire East S43, failed to pay £1,871.52 to 19 workers
  • Fast Fresh Ltd- Liquidated Dec 2019, trading as Subway, Sunderland BN1, failed to pay £1,833.02 to 3 workers
  • Document Transport Limited, trading as Kegworth Hotel, North West Leicestershire PE2, failed to pay £1,801.07 to 10 workers
  • Larne Coachworks Limited, Mid and East Antrim BT1, failed to pay £1,791.69 to 1 worker
  • Mrs Therese Ann Binns, trading as Winston Churchill, Bradford, failed to pay £1,774.35 to 3 workers
  • Mr Brian Wilde, Ms Mariella Gabbutt, Mr Tony Wilde, Mr Joseph Wilde, trading as J & B Wilde & Sons, Manchester, failed to pay £1,717.23 to 4 workers
  • UKS Group Limited, Bristol, City of BS1, failed to pay £1,666.88 to 13 workers
  • LM Bubble Tea Ltd, trading as Mooboo, Liverpool L15, failed to pay £1,628.49 to 14 workers
  • The Wensleydale Heifer Limited, Richmondshire DL8, failed to pay £1,625.89 to 3 workers
  • Fewcott Healthcare Limited, Cherwell OX27, failed to pay £1,575.00 to 2 workers
  • Hotel Birmingham Ltd , trading as Travellers Inn, Sandwell B69, failed to pay £1,516.25 to 3 workers
  • Keasim Glasgow Limited, trading as Malones Glasgow, Glasgow City G2, failed to pay £1,503.43 to 1 worker
  • Shades Hair Design Limited- Dissolved 18/12/2018, trading as Shades Hair & Beauty, Bridgend CF32, failed to pay £1,487.98 to 2 workers
  • Signature Inns Limited, trading as Westmead Hotel, Bromsgrove B48, failed to pay £1,456.81 to 5 workers
  • Kingsland Engineering Company Limited (The), North Norfolk NR26, failed to pay £1,331.79 to 4 workers
  • The Roxburghe Hotel Edinburgh Limited (we have been notified that this company is no longer operating and that the Roxburghe Hotel is under new management), City of Edinburgh EH3, failed to pay £1,317.43 to 47 workers
  • Business Services Organisation, Belfast BT2, failed to pay £1,310.69 to 32 workers
  • Clare McFarlane and Suzanne McGill, trading as Rainbow Room International, South Lanarkshire, failed to pay £1,304.77 to 16 workers
  • Mrs Krystle Purdy, trading as Krystalized, Epping Forest, failed to pay £1,294.13 to 1 worker.
  • Oakminster Healthcare Limited, trading as Cumbrae House Care Home, Glasgow City G41, failed to pay £1,292.30 to 21 workers
  • Rainbows Day Care (Pembrokeshire) Limited-Company dissolved 03/03/2020, Pembrokeshire SA66, failed to pay £1,273.38 to 46 workers
  • Maltings Entertainment Limited, trading as Carbon Nightclub and The Mill Bar and Grill Restaurant, Mid Suffolk IP6, failed to pay £1,263.44 to 1 worker
  • Ben Ong UK Limited – Company Status Liquidation 28/11/2018, Barnet N12, failed to pay £1,257.12 to 3 workers
  • Mr Nosh Fusha, trading as Green Lane Car Wash, Walsall, failed to pay £1,254.73 to 1 worker
  • Cygnet Health Care Limited, Tonbridge and Malling TN15, failed to pay £1,249.55 to 15 workers
  • Thurlaston Meadows Care Home Ltd, Rugby CV23, failed to pay £1,223.54 to 1 worker
  • Trent Park Catering Limited Companies Status- Active Proposal to Strike Off, trading as Trent Park Café, Enfield EN4, failed to pay £1,213.77 to 10 workers
  • Lord Hill Hotel Limited, Shropshire SY2, failed to pay £1,168.91 to 18 workers
  • Smart Solutions (Recruitment) Limited, Newport NP18, failed to pay £1,152.09 to 90 workers
  • Black Rock Hotels Limited, trading as Leighinmohr House Hotel,Mid and East Antrim BT42, failed to pay £1,138.05 to 30 workers
  • Gino’s Dial-A-Pizza Ltd, Cannock Chase WS11, failed to pay £1,117.38 to 7 workers
  • Mitras Automotive (UK) Limited, Cheshire West and Chester CW7, failed to pay£1,048.29 to 3 workers
  • Anjana Bhog Sweets Limited-Dissolved 17/09/19, Brent UB3, failed to pay £1,020.00 to 1 worker
  • Mr Mohammed Nasir, trading as Omar Khayyam, City of Edinburgh, failed to pay £935.31 to 2 workers
  • About Face Beauty Clinic Limited, Glasgow City G74, failed to pay £924.51 to 6 workers
  • Mr Howard Coy, trading as H Coy & Son, Melton failed to pay £902.29 to 1 worker
  • Jameson Knight Estates Limited-Dissolved 29/01/2019, Tower Hamlets E2, failed to pay £885.06 to 2 workers
  • Croome International Transport Limited, Maidstone ME17, failed to pay £869.19 to 8 workers
  • Rainbow Room (24 Royal Exchange Square) Limited, Glasgow City G1, failed to pay £851.70 to 6 workers
  • The Coaching Inn Group (No2) Limited-Application for voluntary strike-off – Dec 2019, Boston PE21, failed to pay £811.88 to 2 workers
  • Cotswold Motor Group Limited, Cheltenham GL51, failed to pay £796.31 to 2 workers
  • Glenpac Bacon Products Limited , Newry, Mourne and Down BT35, failed to pay £752.02 to 2 workers
  • Mistsolar Limited, trading as Bridgend Ford, Bridgend CF31, failed to pay £739.00 to 1 worker
  • Robinson’s of Failsworth (Bakers) Limited, Tameside M35, failed to pay £736.82 to 9 workers
  • Mr Timothy Lock and Mrs Beatrice Lock, trading as Woodborough Hall, Gedling, failed to pay £723.60 to 2 workers
  • Nova Display Limited, Leeds LS25, failed to pay £722.78 to 1 worker
  • Dessert House on the River Limited- Compulsory notice to strike off – 17/03/20 suspended 29/04/20, trading as Kaspa’s Desserts, Lewisham M16, failed to pay £719.10 to 1 worker
  • Mr Edwin Minchin, trading as Eddie’s Diner, Great Yarmouth, failed to pay £670.13 to 3 workers
  • The Izaak Walton Hotel (Dovedale) Ltd, Staffordshire Moorlands LA22, failed to pay £667.60 to 2 workers
  • Mr David Blake, trading as Foxhills Farm and Riding Centre, Walsall, failed to pay£667.54 to 1 worker
  • Shaoke Hospitality Ltd- Dissolved 30/04/2020, trading as Mooboo, Leeds L15, failed to pay £664.94 to 5 workers
  • Richard Webster & Co Limited, Eastleigh SO50, failed to pay £621.23 to 1 worker
  • Newemoo Limited, Birmingham B5, failed to pay £591.86 to 2 workers
  • Regional Buildings Assessments LLP, Hyndburn BB1, failed to pay £562.89 to 2 workers
  • Ace Hospitality Ltd, trading as Holiday Inn Express Birmingham- South A45, Birmingham B73, failed to pay £556.15 to 14 workers
  • Mrs Elizabeth Norris and Dr Terry Hooper, trading as St Bart’s Day Nurseries, Dover, failed to pay £552.53 to 9 workers
  • The Club Company (UK) Limited, Wokingham RG10, failed to pay £540.30 to 11 workers
  • Eat Tokyo Limited, Barnet NW11, failed to pay £530.83 to 2 workers
  • Molescroft Nursing Home (Holdings) Limited, trading as Beverley Grange Nursing Home, East Riding of Yorkshire HU13, failed to pay £510.24 to 1 worker

The Naming Scheme was paused in 2018 so that an evaluation into its effectiveness could be carried out. On 11 February 2020 the government announced that the Naming Scheme would resume.

The government undertook a review of the Naming Scheme in order to ascertain its effectiveness and ensure naming was used in the most efficient way. The review was published in February 2020.

National Living Wage increases today

The National Living Wage (NLW) will increase today (Wednesday 1 April) to £8.72, giving a pay rise to thousands of workers at the frontline of the UK’s response to Covid-19.

This rise follows recommendations made to the Government by the Low Pay Commission (LPC) in the autumn. It means the rate reaches the target of 60 per cent of median earnings, originally set by the Government in 2015.

In the 11 March Budget, the Government confirmed its ambition for the NLW to continue increasing towards a new target of two-thirds of median earnings by 2024. It asked the LPC to advise on whether the economic evidence warranted these increases. The LPC will make its recommendations to Government on the 2021 National Minimum Wage rates in October.

Bryan Sanderson, Chair of the Low Pay Commission, said: “Many of the nation’s key workers – in, for example, the care sector, agriculture, transport and retail – are low-paid, are continuing to work in very difficult conditions and will benefit from today’s increase.

“At the same time, the Government has introduced a comprehensive package of support for employers to lessen the impacts of these extraordinary circumstances.

“Under our new remit, the Government asks us to monitor the labour market and the impacts of the National Living Wage closely, advise on any emerging risks and – if the economic evidence warrants it – recommend that the government reviews its target or timeframe.

“This is what the Government refers to as the ‘emergency brake’. The ongoing Covid-19 pandemic clearly represents a very challenging set of circumstances for workers and employers alike, and will require us to review whether the emergency brake is required when we next provide our advice to the Government. This advice will be crucially dependent as always on the economic data we receive.”

The LPC has published a short report looking at the NLW’s path to the 60 per cent target and outlining how we will approach the new two-thirds target. This report does not set out a pathway to the new target, given the uncertainty over the current and future state of the labour market.

The other rates of the National Minimum Wage will also increase alongside the NLW:

Previous rate Current rate from 1 April 2020 Increase
National Living Wage £8.21 £8.72 6.2%
21-24 Year Old Rate £7.70 £8.20 6.5%
18-20 Year Old Rate £6.15 £6.45 4.9%
16-17 Year Old Rate £4.35 £4.55 4.6%
Apprentice Rate £3.90 £4.15 6.4%
Accommodation Offset £7.55 £8.20 6.4%

New research shows overwhelming support for further increases in order to tackle low pay.

The report, based on a large-scale representative survey of adults across the UK and focus groups with low paid workers, found that two in three adults (66%) thought that the wage floor was too low, and that it should be increased, with just one in fifty (2%) saying it was too high. Support for boosting the minimum wage was highest among young adults, low income households, and those in lower socio-economic groups.

The National Living Wage – the mandatory minimum wage for workers aged 25 and over – increases by 51p to £8.72.

The largest cash boost to the minimum wage since its introduction comes at a difficult time for the economy and household incomes, with many businesses and workers deeply affected by the coronavirus crisis.

The increase was announced in December, when employment stood at a record high, and when there was no indication of the scale of the damage coronavirus would cause.

Even before the current crisis, half (48%) of adults surveyed agreed that government should take a cautious approach to setting the wage floor to avoid an increase in unemployment; while one in three (37%) said government should take a more ambitious approach to increasing the minimum wage, even if it risked a small increase in unemployment.

There was however strong support for the government’s long-term plan to increase the National Living Wage to two thirds of median pay by 2024 – forecast to be £10.50 – and extend it to all workers aged 21 and over. Nearly seven in ten adults (66%) supported the proposal and fewer than one in ten (9%) opposed.

Despite the increase in the minimum wage in recent years, the number of adults in in-work poverty had grown, even before the coronavirus crisis. Low paid workers described the impact poverty has on their lives; from being unable to afford the basics and getting into debt, to having to work multiple jobs.

While low paid workers supported a higher minimum wage, many were sceptical about the extent to which it will benefit them. Low paid workers felt that increases in pay as a result of a higher minimum wage would be offset by lower Universal Credit income, leaving them little better off.

Low paid workers were also pessimistic about how businesses would respond to a higher wage floor, with many fearing their employer would cut back on other benefits, or reduce hours or staffing in response.

The report is the first in a programme led by Learning and Work Institute and Carnegie UK Trust, exploring the impact of a higher minimum wage on workers, employers and the economy. The programme will set out how a higher wage floor could be part of a broader strategy to tackle low pay and in work poverty and promote good work.

Joe Dromey, deputy director of research and development at Learning and Work Institute said; “The minimum wage has helped tackle extreme low pay without costing jobs. While this increase comes at a difficult time, it will mean a welcome pay rise for millions of workers.

“There is overwhelming support for future increases in the minimum wage – particularly among low paid workers. With the economy likely to take a big hit from coronavirus, the government will need to think carefully about how this can be delivered, but it should remain focused on both tackling low pay and in-work poverty.”

Douglas White, Head of Advocacy at the Carnegie UK Trust, said; “Decent pay is a critical aspect of good work, vital to help workers provide for themselves and their families, and clearly maintaining incomes is at the forefront of people’s minds at this time of crisis.

“National Minimum Wage policy is not the only route to supporting the living standards of workers – Government has also taken significant steps in recent weeks to maintain people’s incomes through the Coronavirus Jobs Retention Scheme and the social security system.

“However, we welcome this week’s uprate in the Minimum Wage, and we encourage the UK Government to continue their commitment to an ambitious minimum wage policy. Our research demonstrates that even before this current crisis, far too many workers feel that wages do not cover the cost of living and that despite working hard they are being pushed in poverty.”

The-future-of-the-minimum-wage-The-worker-perspective-report

Millions of lower paid workers have suffered pay cuts since 2010, TUC reveals

  • Average pay has fallen for millions of lower and middle-income jobs since 2010
  • The highest paid jobs have had an average 4% pay increase since 2010
  • Austerity and lack of bargaining rights has held down pay in working-class and middle-class jobs, says TUC

Continue reading Millions of lower paid workers have suffered pay cuts since 2010, TUC reveals

Wages rising at fastest rate in a decade

The UK’s employment rate is a joint-record 75.8%, rising by 3.55 million since 2010, says the DWP.

Employment rate remains high at 75.8%

 

UK wages are increasing at their joint-fastest rate in a decade, with unemployment remaining low at 4 per cent. The figures, published today by the Office for National Statistics (ONS), showed that wages outpaced inflation for the eleventh month in a row.

Unemployment rate remains low at 4%

 

The new figures confirmed that 2018 was a year of “widespread employment opportunity” showing:

  • a record high employment rate for people from ethnic minority backgrounds of 66.2%
  • 145,000 more disabled people found work since last year, an overall increase of 930,000 in the last 5 years
  • more women are in the workplace than ever before, 15.31 million. The female employment rate is also a record – 71.4%

Minister of State for Employment Alok Sharma said: “While the global economy is facing many challenges, particularly in sectors like manufacturing, these figures show the underlying resilience of our jobs market – once again delivering record employment levels.

“Our pro-business policies mean we have started the new year with a strong labour market, with wages outpacing inflation for the eleventh month in a row, and more people in work than ever before. It’s also excellent news that we see the rate of women in employment at a record high.

“Of course, we need to ensure that we continue to provide one-to-one support for anyone whose jobs may be at risk, or who might be looking to move to a new role.”

The DWP press statement says government is helping even more people benefit from a ‘well-paid job’ by:

  • backing businesses to create good jobs with our modern Industrial Strategy, while ensuring they play by the rules, so we are closing tax loopholes, strengthening workers’ rights, and tightening the rules big businesses must follow
  • investing in the infrastructure, training and apprenticeships we need for our future, with public investment at the highest sustained level in 40 years
  • introducing Universal Credit which is helping people move into work faster and stay in it longer, while recent

Westminster Budget measures mean 2.4 million families will keep up to an extra £630 a year of what they earn:

  • helping people stay in work longer with our Fuller Working Lives strategy, which supports employers to recruit, re-train and retain older workers
  • tackling inequalities in employment highlighted by the Race Disparity Audit, through targeted support in 20 areas around the country and £90 million announced by the Prime Minister to help young people.

Clearly, we’ve never had it so good. That’s right, isn’t it?

Rise in Minimum Wage is coming – but it’s not enough, say campaigners

‘The Low Pay Commission should do what it says on the tin – and fight for the low paid’ – GMB General Secretary Paul Kenny

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The Low Pay Commission LPC) has recommended to the Government that the adult rate of the National Minimum Wage should rise by 3 per cent to £6.70 from October – but trade union leaders and anti-poverty campaigners argue the increase simply isn’t enough

The LPC’s aim is to advise on a rate that protects as many low-paid workers as possible without damaging jobs or the economy. The Commission says it has carefully weighed the risk of doing too little to raise the earnings of the lowest paid against the risk of recommending more than business and the economy can afford.

With inflation now forecast at 0.5 per cent, this recommendation would, if accepted by the Government:

  • be the largest real-terms increase in the NMW since 2007, taking its estimated real value three-quarters of the way back to its highest ever level.
  • increase the NMW to its highest value relative to other wages. Its bite – the value as a proportion of typical wages – is already at its peak. This would increase it further. Influential in our recommendation has been evidence of strong employment growth in low-paying sectors and firms of all sizes.
  • expand coverage of the number of jobs covered by the main rate of the minimum wage to an estimate of over 1.4 million (PDF, 1.87MB, 13 pages) . This compares with 900,000 at the start of the downturn in 2008, as the minimum wage has risen in relation to median earnings.

Commenting on the recommendation, David Norgrove, Chair of the LPC said: “Last year we were pleased to recommend the first real terms increase in the value of the minimum wage since the recession. We argued that the minimum wage had proved its worth over the course of the slowdown, increasing relative to earnings generally and protecting the low paid during the downturn in a way not seen before albeit, as with wages for all other workers, its real value fell.

“Sharp increases in the minimum wage would put jobs at risk – not least bearing in mind pressure on low-paying sectors and small firms. We do believe however that the continued recovery, and in particular the impressive growth in employment of the low paid, should this year allow a further increase in the real and relative value of the minimum wage.

“An increase of 3 per cent to £6.70 is a larger real terms increase than last year and, on the basis of the most recent Bank of England inflation forecast, should restore three-quarters of the fall in the real value of the NMW relative to its peak in 2007.

“We judge that the improved economic and labour market conditions mean once again that employers will be able to respond in a way that supports employment. However, our recommendation this year is predicated on a forecast which foresees lower costs for business in fuel and energy, a strong economic performance, significant recovery in earnings across the economy and rising productivity. If these expectations are not borne out over the year we will take this into account when considering next year’s recommendation”.

As well as its recommendation for the adult rate, the Low Pay Commission has also recommended:

  • an increase of 3.3 per cent to £5.30 in the Youth Development Rate, which applies to 18-20 year olds;
  • an increase of 2.2 per cent to £3.87 in the 16-17 Year Old Rate;
  • an increase of 2.6 per cent to £2.80 in the Apprentice Rate, which applies to all apprentices in year one of an apprenticeship, and 16-18 year old apprentices in any year of an apprenticeship;
  • an increase of 27 pence in the accommodation offset to £5.35. The offset is the one benefit-in-kind that can count towards the minimum wage. This is the maximum daily sum employers who provide accommodation can deduct towards those costs.

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However some argue that the increase doesn’t go far enough. The GMB trade union has called on Vince Cable to revise the LPC’s proposal of £6.70 National Minimum Wage from October to make up ground lost during the recession. The GMB says the rate should be at least £6.99 per hour.

Paul Kenny, GMB General Secretary, said “This is a missed opportunity by the Low Pay Commission to uprate the national minimum wage to the real term rate that it was before the recession hit in 2007. Vince Cable should revise the proposal.

“With the economic recovery under way there is no justification for the national minimum wage not going back to where it was in real terms before the recession.

“The Low Pay Commission should have recommended a rate of at least £6.99 per hour from October 2015 to make up the ground lost since the rate was fixed at £5.65 from 1st October 2006 before the recession.

“The Low Pay Commission should do what it says on the tin – and fight for the low paid.

“There has to be a concerted effort to make work pay. If this was done, staff would not need their meagre wages to be topped up by taxpayers with family tax credits and housing benefits so as to make ends meet.

“GMB members tell us that in their experience at least £10 an hour and a full working week is needed to have a decent life free from benefits and tax credits. Less than £10 an hour means just existing not living. It means a life of isolation, unable to socialise. It means a life of constant anxiety over paying bills and of borrowing from friends, family and pay day loan sharks just to make ends meet.”

The Poverty Alliance is spearheading the campaign for a living wage in Scotland.

“The Scottish Living Wage Campaign believes that a job should help you out of poverty, not keep you there.

“The National Minimum Wage is not enough for individuals in Scotland to access the essentials of everyday life. £6.50 per hour will just never be enough to cover the day to day basics, nevermind to save some money or plan for emergencies.

“Hundreds of thousands of workers are being paid wages that basically equate to poverty pay. This is simply not right.”