Low pay Labour sets out plan to link minimum wage to cost of living
The Guardian|August 20, 2022
Labour has drawn up plans to put hundreds of pounds into the pockets of the lowest paid by instructing the Low Pay Commission to factor in living costs when it sets the minimum wage.
Pippa Crerar
Low pay Labour sets out plan to link minimum wage to cost of living

They also want to scrap the lower pay categories for workers aged between 18 and 22, so they would all be paid at the higher rate.

The minimum wage is set at £9.50 an hour for those aged 23 and above, £9.18 for 21- and 22-year-olds, and £6.83 for workers between 18 and 20.

The proposal to help tackle the cost of living crisis comes after the party announced a £29bn plan to freeze the energy price cap this autumn.

With inflation soaring to a 40-year high of 10.1% - heaping more pain on households as the cost of food, energy and fuel increase - pressure will grow on the government to follow.

In a joint article for the Guardian, the deputy Labour leader, Angela Rayner, and the shadow chancellor, Rachel Reeves, write: "Poverty pay doesn't just cause financial misery, it undermines many of the things that matter in life.

This story is from the August 20, 2022 edition of The Guardian.

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This story is from the August 20, 2022 edition of The Guardian.

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