Labour leader, Ed Miliband, has announced he will increase the minimum wage if Labour wins the next general election. Miliband said his party would introduce a statutory minimum wage linked to average hourly earnings.
The exact hourly rate is yet to be revealed but the pledge comes as part of Labour’s plan to tackle low pay in the UK. The current minimum wage, set to increase from £6.31 to £6.50 an hour in October, was recommended by the Low Pay Commission (LPC) but criticised by unions who claimed the LPC bowed to commercial pressures. However, Employer-led groups have raised concerns a minimum wage set too high could undermine economic growth and impact job creation.