You are here: Home - Household Bills - News -

Calls for £15-an-hour minimum wage

0
Written by: Emma Lunn
24/08/2022
The Trades Union Congress (TUC) has called for the minimum wage to be upped to £15 an hour.

The union body has set out a plan for pay growth as workers struggle to stay afloat in a period of rising inflation and soaring energy bills. It says the government needs to “transition the economy to high-wage, high-skilled and secure jobs,” and “shift our economic model away from a reliance on low-paid and insecure work”.

The TUC’s plan is underpinned by a £15 minimum wage – up from the £9.50 an hour minimum paid at the moment.

As part of its package of measures to deal with the cost of living crisis, the TUC is also calling for the minimum wage to be uprated by at least inflation this October – as opposed to April next year when the uprating is due.

The TUC said the government must deliver a return to normal wage growth so workers get proper pay rises for the first time in more than a decade. It called for sustained pay growth, year on year, so that median wages reach £20 an hour as soon as possible.

Since the minimum wage was introduced, its level as a proportion of the median wage has increased – starting at 47% in 1999 and expected to reach 66% by 2024, although the TUC said that a more ambitious target of 75% is the “logical next step”.

According to the TUC, between 1997 and 2010 nominal wages grew by an average of 3.8% a year. It says that at the very least, we need to see this level of growth again as this would deliver a £20 median wage by 2030.

Frances O’Grady, TUC general secretary, said: “Millions of low-paid workers live wage packet to wage packet, struggling to get by – and they are now being pushed to the brink by eye-watering bills and soaring prices.

“For too long workers have been told that businesses can’t afford to pay them more. But again and again the evidence has shown that firms are still making profits and increasing jobs – we can afford higher wages.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week