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Mar 29, 2024 | News

Minimum wage is ‘UK’s most effective economic policy’

According to a report that said the minimum wage was the UK’s “single-most successful economic policy for a generation”, it raised wages by PS6,000 per year for the lowest paid.

The Resolution Foundation thinktank published a report on the 25th anniversary minimum wage.

The study showed that between 1980-1998, the hourly pay in the UK grew twice as fast for high earners than for low earners (3.1% against 1.4%). This trend has reversed since 1999.

“The policy has been introduced in the face of fierce opposition,” noted Nye Kominetti, principal economic economist at the Resolution Foundation. “But now it enjoys strong cross-party backing.”

The UK’s minimum wage will be increasing from PS10.42 up to PS11.44 next week, making it the largest ever increase. The Resolution Foundation warns that there is still room for improvement in other areas of low-paid employment, from job intensity to worker rights.

The foundation also noted that neither the main parties had a plan for the minimum wage after 2024.

Image: RDNE stock project

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