SINCE 2015 Britain’s minimum wage for over-25s has risen by nearly a quarter, to £8.21 an hour. On September 30th Sajid Javid, the chancellor, announced that the government is not done yet. Firming up an “ultimate objective” of his predecessor, Philip Hammond, Mr Javid promised to “end low pay” by 2024 by raising the minimum wage to two-thirds of median earnings. Today that rule would produce a rate of around £9 an hour; Mr Javid thinks in five years’ time it will work out at £10.
Britain’s minimum wage is growing faster than those of other rich countries, causing it to climb in the international rankings of minimum wages relative to earnings . Mr Javid’s plan would probably put it near the top. Clearly this rise cannot go on for ever because at some point low-skilled workers would be priced out of the labour market. But there is no certainty among economists about where the limit might lie.
If implemented, the relative size of the new pay floor will vary greatly around the country . Two-thirds of the national median wage is less than half of the median wage in London and would apply to only 10% of workers there, according to estimates by the Resolution Foundation, a think-tank. In Wales it would be over three-quarters of median pay and would apply to nearly one in four workers.
Just like the rises that started in 2015, the policy steals thunder from the opposition Labour Party. Labour promises a £10 minimum, albeit without much delay and for all over-18s. Britain’s embrace of high minimum wages owes much to political manoeuvring, but economists are watching the experiment closely.
What a trash take. 😂😂😂
Hardly counts when they have the highest everything else!
Oh I'm sorry. I can't work here, you pay too much.
FFS it’d still not enough, you do know the bills people have to pay?
How high can Britain's minimum wage go before it prices bad employers out of the market?
Minimum wage is high 'relative to earnings'? Is that a shifty way of saying that general earnings are low and the minimum wage is now beginning to catch-up to 'average' earnings?
c.f Australian minimum wage, you would have a long way to go. However how different are local conditions / factors
You know what they say about statistics. This is simply a reflection that the median wage in Britain is lower than that in other developed nations. As our wages increase - post austerity - the graph will change dramatically. Do not expect this from the Economist!
Next week high wages yeah?
Very dangerous to mess with market forces!
Literally anything above cero £ will lead to some unemployment.
'minimum wage ' is not the key of the problem, the number of workers at minimum wage says more ))
Speak for Uighur Muslims!!
Thanks to Tory party
Wages rise is a big factor of growth.Greedy Employers and cheating economists deny that
Step 1: increase immigration Step 2: increase minimum wage Step: 3: price lower skilled workers out of the market Step 4: raise taxes to pay for unemployed social services
I don’t know how deep the study maybe.
Not high eneough that’s forsure
Opening the book of elementary Economics, it's been saying, the workers in UK were too powerful, they pulled down the economy of UK.
Let’s not forget how vehemently the Tories fought against the minimum wage and look how successful it’s been. How different this Country would be without the poisonous influence of the RW media.
Notice US is at the bottom.
That is if the government keeps its promise. 🤣😂🤣
This paid article wants people to think England gives more money to spend of that there are more opportubities, a better life style and there isnt. There is the same old things with more censorship and more taxes. Not only that, immigrants reduce the wage of high paying jobs
No he pledged to rise the Living wage which is completely different to minimum wage! The Conservatives bullshi!t play on words obviously fools people including Journalists.
What bout cost of living
And it's still going to be too low
In aggregate. Still many workers not even paid minimum wage and horrifically exploited by bosses. All changes though after 31 October - according to mouthpieces for Boris.
Now let’s see that as a function of current cost of living AND prorated for what things cost 20 years ago. iamluckytonotbe25
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