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Minimum wage now worth less

Andrew Grice
Monday 16 April 2012 17:40 EDT
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The national minimum wage is now worth less than it was in 2004 and a higher rate should be introduced for workers aged 25 and over, according to a report published today.

The Resolution Foundation, an independent think-tank, found that the recently announced increase from £6.08 to £6.19 this October will leave the minimum wage 6 per cent below its 2009 peak in real terms because it has been rising by less than inflation.

Professor Alan Manning, of the London School of Economics, says in his report that the caution about raising it in recent years is justified but he finds the impact of the wage floor has now stalled.

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