Wrong to deny young people an increase in the minimum wage, says TUC

date: 19 March 2012

embargo: For immediate release

Responding to the announcement by the government today (Monday) that it has accepted the recommendations of the Low Pay Commission (LPC) to freeze the rate of the minimum wage (NMW) for young people from October, TUC General Secretary Brendan Barber said:

“It is wrong to deny young people an increase this year, as there is no evidence that the minimum wage has had an adverse impact on jobs. The reason why firms have not been hiring enough new workers is because they lack confidence in this government’s ability to set the UK on course for a sound economic recovery. There is now a real danger that young people will view minimum wage work as exploitative.

“We welcome the LPC’s modest increase for apprentices and its rejection of calls to freeze the adult rate. Many of the business representatives that called for the minimum wage to be frozen are also complaining about the lack of consumer spending. Boosting demand is vital – but this will not be achieved by squeezing the low paid even further.

“Low-paid workers, like hairdressers, shop workers and care assistants, tend to spend 100 per cent of any salary increase in local shops and businesses so, as well as providing some relief to hard pressed families, a well-judged rise in the minimum wage helps stimulate demand across the UK economy.”

NOTES TO EDITORS:

NMW rates from October 2012:

- For the full government announcement please visit http://nds.coi.gov.uk/content/Detail.aspx?ReleaseID=423769&NewsAreaID=2

- The minimum wage is enforced by HM Revenue and Customs. Phone the Pay and Work Rights Helpline on 0800 917 2368.

- All TUC press releases can be found at www.tuc.org.uk

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Elly Gibson T: 020 7467 1337 M: 07900 910624 E: egibson@tuc.org.uk