New analysis shows Labour’s £10 Real Living Wage would give nearly half a million workers in the East Midlands a pay rise
Britain needs a pay rise. A Labour government would give almost a quarter of workers (23 per cent) a pay rise, with more than 40 per cent of workers in parts of the country benefitting, new analysis reveals. Real wages in Britain are still lower now than they were before the crisis, 10 years ago. Workers have faced a lost decade.
The Government has not done enough to boost pay, especially for those on the lowest incomes. For example, the OBR are now forecasting that the National Living Wage will be £8.75 per hour in 2020, not £9 per hour as had initially been promised. At the same time the OBR has forecast that the National Minimum Wage for 21-24 year olds will reach just £7.75 per hour for 21-24 year olds by 2020.
And under the Conservatives, the NLW is set to be even lower, after they watered down their commitment to it in their election manifesto. Labour will take a different approach, one which puts working people first.
As part of Labour’s commitments to improving the lives of working people across the country, it will raise the Minimum Wage to the level of the Living Wage (expected to be at least £10 per hour by 2020) – for all workers aged 18 or over, so that work pays.
New regional analysis reveals that nearly half a million workers in the East Midlands would get a pay rise under Labour’s proposals. In Nottingham City alone, 46,000 workers would be better off - and in Mansfield nearly 40% of the workforce would see an improvement in their pay packet. In Lincolnshire, a third would be getting a better deal, and in Leicester City, 40,000 workers would be bringing home more money.
Full-time employees currently earning the Government’s National Living Wage will be better off by over £2,500 in 2020 under Labour’s plans.
Labour will abolish the lower youth rate, making everyone over 18 entitled to the Real Living Wage. This means that 21-24 year olds currently earning the National Minimum Wage (NMW) will be better off by over £4,500 in 2020.
Analysis by the Labour Party shows the proportion of employees and number of people who will benefit from Labour’s Real Living Wage Policy on regional local authority district and unitary authority basis.
Rebecca Long-Bailey, Shadow Secretary for Business, Energy and Industrial Strategy, said:
“The stagnation of real wages currently being experienced is unprecedented since at least the Second World War. We must take bold and imaginative measures to tackle low pay. One crucial step in this direction is to raise the Minimum Wage to the level of the Living Wage, expected to be at least £10 per hour by 2020 – for all workers aged 18 or over.
“People should be rewarded for a full day’s work and need the dignity that comes with decent wages. Britain needs a pay rise and only a Labour government can deliver one.”