NMW increase will hit the most vulnerable the hardest
New IEA research calls for urgent action to prevent state-funded political activism
IEA releases its recommendations for the 2014 Budget
For people out of work, the real minimum wage is zero
“This increase will have a negative effect on the people it is meant to help: the young and low-skilled. For people out of work, the real minimum wage is zero.
“The national minimum wage has grown faster than average earnings since 2007 and today’s recommended 3% increase comes at a time when average wages are still growing slowly. Legislated pay hikes such as this are likely to privilege those in work whilst worsening the job prospects for the most vulnerable.
“Whilst the LPC claims to take into consideration the potential effects on employment and firms’ ability to pay, many politicians unfortunately still seem to advocate even higher minimum wages and even more intervention. Policymakers should be focusing on tackling rising living costs to benefit everyone, rather than imposing further cost burdens on business and barriers to work.”
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