Young people let down again by real-term cut in minimum wage

Young people across Britain have yet again been let down after the government announced that they will face a real terms cut in the minimum wage.

The government have announced a pathetic 4p rise in the basic minimum wage bringing it up to just £3:72 for 16 and 17 year olds.

The ‘rise’ in the minimum wage is well below the 2.7% consumer price inflation rate resulting in a real term cut for some of the poorest and most vulnerable young people across the UK. This blow makes a mockery of the government’s commitment to ‘make work pay‘.

This ‘increase’ also leaves the minimum wage well under the ‘living wage for Londoners’.

The ‘Living Wage’ set at £8:55 for Londoners is worked out on the basic cost of living – over £5 over the current minimum wage for 16 and 17 year olds.

When this government proudly announces it’s ‘increase’ despite the Low Pay Commissions’ recommendations – don’t believe them. This is a real term cut.

The differing levels of the new minimum wage (depending on your age) which come into effect from the 1st October 2013 can be found here

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1 Comment

Filed under Economics, Politics

One response to “Young people let down again by real-term cut in minimum wage

  1. Tories trying to decrease the welfare bill often has the opposite effect of increasing it – such as this policy, were more people will need more top-up benefits just so that they can live and afford rent etc. – even if they are in work.

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