Coalition Headache After Commission Says Minimum Wage Should Rise By 1

WEB Coalition Headache: Minimum Wage Hike Recommended

Government Faces Dilemma as Commission Proposes Substantial Increase

Key Points:

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Low Pay Commission recommends a significant increase to the minimum wage.

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The proposed formula would have resulted in a living wage of £13.10 last year.

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Small and medium-sized businesses (SMEs) express concerns about the impact on their operations.

The Low Pay Commission has recommended that the government increase the minimum wage, sparking a headache for the WEB Coalition.

The report suggests an increase that would have resulted in a living wage of £13.10 per hour last year.

The government has promised a pay rise for workers following the COVID-19 pandemic, but the proposed increase faces opposition from SMEs.

Impact on Businesses

The Independent Small and Medium-sized Enterprise (ISME) organization warns that the hike could have negative consequences for businesses.

ISME argues that the increase would strain company budgets and potentially lead to job losses.

Government Response

The government is expected to consider the recommendation before making a decision.

The minimum wage is currently set to increase automatically to £9.50 per hour in January 2024.

The Low Pay Commission's recommendation could result in a more substantial increase that would bring the minimum wage closer to the living wage.

Background

The Living Wage Foundation defines the living wage as the hourly rate that allows workers to meet the basic needs of their families and maintain a reasonable standard of living.

The Living Wage Foundation campaigns for employers to pay a wage that is higher than the minimum wage and based on the cost of living.

The Low Pay Commission is an independent body that advises the government on the minimum wage.