Minimum wage should rise to £15 for all workers, says TUCon August 24, 2022 at 8:42 am

The minimum wage in the UK should rise to £15 an hour “as soon as possible”, the Trades Union Congress (TUC) says.

This rate should apply to workers of all ages instead of the current lower rate for under-23s, it said.

Minimum wage is £9.50 an hour for workers over the age of 23 and £9.18 for 21 and 22 year olds. Inflation – the rate at which prices rise – is at 10.1% – so wages don’t go as far.

The government said increasing minimum wage could push unemployment up.

Prices are rising at their fastest rate in 40 years, driven by higher food, fuel and energy costs.

Frances O’Grady, general secretary of the TUC, said: “Every worker should be able to afford a decent standard of living.

“But 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.”

The government said it was “determined to make work pay” and that this year’s increase in the minimum wage, in April, was the largest ever rise. However it said setting the minimum wage too high or increasing it too quickly could lead to higher unemployment.

The TUC argues that at a time when companies are paying increased dividends to shareholders, the government should ensure workers get “their fair share” by increasing minimum wage rates now, rather than waiting for the next expected up-rating in April.

“We’ve had promises from the government time after time, that we should have a high wage economy,” Ms O’Grady told BBC Radio 4’s Today programme.

“It should start with low-paid workers who are “absolutely terrified about what those hikes in energy bills will mean for their budgets, having to fork out for school uniforms and put food on the table”, she said.

She said a higher minimum wage would mean workers were less likely to be claiming in-work benefits, and more likely to be paying taxes as well as buying goods and services on the High Street.

There was no justification for paying lower rates to younger workers, she added. Workers aged 18 to 20 are paid at £6.83 an hour.

“It’s clear to me, and I think to many people, that people ought to be paid the rate for the job, regardless of the age they are,” Ms O’Grady said.

“If they’re working as hard doing the same job, why should they be discriminated against simply because they’re under 23?”

However, Matthew Percival, director of skills and inclusion at the CBI, which represents businesses, said there should not be a new target for the minimum wage and that any rise in its rate should be rooted in growth and higher productivity across the economy.

“Firms are increasing wages where they can, but energy price rises are pushing some to the brink. High energy prices require urgent government action to support households and businesses, not relying on the minimum wage alone,” he said.

The minimum wage is set in relation to the median wage – an average calculated by taking every pay-packet in the UK and identifying the mid-point. The current target is for the minimum wage to reach 66% of median wages by 2024. The TUC argues wages should rise for all workers to an average of £20 an hour and that the minimum wage target should be 75% of that.

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