Corbyn’s £10 living wage will harm those he claims to protect the most
10 April 2017
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Government and Institutions
Reaction to Jeremy Corbyn's promise to raise the living wage
Commenting on Jeremy Corbyn’s promise to raise the National Living Wage to £10, Mark Littlewood, Director General at the Institute of Economic Affairs said:
“Raising the minimum wage so sharply would put the jobs of low-skilled workers and those in part-time work at risk. We have already seen companies in the retail, food and social care sectors scrap in-work perks, withdraw overtime and Sunday pay, and cut hours in an attempt to offset the costs of the National Living Wage – proof that arbitrarily instituting wage increases does nothing for the workers it is attempting to help.
“The ones who will really feel the effects of such a measure are those in part time work, a large proportion of whom are women; young workers; and ethnic minorities – a disproportionate number of whom work in low-paid or low-skilled jobs. It’s quite baffling how the Labour Party are even contemplating a policy that will hurt the groups of people they claim to protect.
“And why stop at £10? Why not £20? Or £100? Rather than considering the general health of the economy and firms’ ability to pay, Mr Corbyn seems to have irresponsibly plucked a number out of the sky that feels right rather than one that makes economic sense.”
Notes to editors:
For media enquiries please contact Nerissa Chesterfield, Communications Officer: nchesterfield@iea.org.uk 020 7799 8920 or 07791 390 268.
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.
“Raising the minimum wage so sharply would put the jobs of low-skilled workers and those in part-time work at risk. We have already seen companies in the retail, food and social care sectors scrap in-work perks, withdraw overtime and Sunday pay, and cut hours in an attempt to offset the costs of the National Living Wage – proof that arbitrarily instituting wage increases does nothing for the workers it is attempting to help.
“The ones who will really feel the effects of such a measure are those in part time work, a large proportion of whom are women; young workers; and ethnic minorities – a disproportionate number of whom work in low-paid or low-skilled jobs. It’s quite baffling how the Labour Party are even contemplating a policy that will hurt the groups of people they claim to protect.
“And why stop at £10? Why not £20? Or £100? Rather than considering the general health of the economy and firms’ ability to pay, Mr Corbyn seems to have irresponsibly plucked a number out of the sky that feels right rather than one that makes economic sense.”
Notes to editors:
For media enquiries please contact Nerissa Chesterfield, Communications Officer: nchesterfield@iea.org.uk 020 7799 8920 or 07791 390 268.
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.
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