‘Raw deal’

Unions have warned that the slight increase in wages nearly 2m workers will see from today (April 1) are not enough to end poverty pay.

Hourly rates for adult workers aged over 24 will rise from ÂŁ7.83 to ÂŁ8.21, those aged between 21-to-24 will see their pay go from ÂŁ7.38 to ÂŁ7.70, while wages for 18-to-20 year olds will go from ÂŁ5.90 an hour to ÂŁ6.15.

The staggering the minimum wage according to age means young people are being paid ÂŁ200m a year less than older workers, a study released by the TUC to coincide with the rise found.

TUC general secretary Frances O’Grady called for equal pay for all age groups receiving the minimum wage.

She said, “Young workers are still getting a raw deal on pay. Their bills aren’t any cheaper, but they have to make ends meet with less.”

Despite government crowing that the increase delivers on their commitment that “UK workers get a fair day’s pay”, TUC senior economist Geoff Tily explained that only the richer are getting richer under the Tories.

He said, “Only (four) industries have pay above the pre-crisis position, and only just. Echoing the most severe pay crisis for two centuries, real pay in the 15 other industry groupings is still well below pre-crisis level. Excluding finance and insurance, industry pay declined by approximately 3 per cent over the decade.”

Unite assistant general secretary Steve Turner referred to a Unite study that shows raising the minimum wage to ÂŁ10 per hour for workers aged 18 and over would help end pay misery and boost public finances by an estimated ÂŁ5.6bn a year.

“Increasing the minimum wage and national living wage to £10 per hour would be a huge boost for young workers and help end poverty pay rates that hospitality workers have to endure,” Turner said.

“It would be a virtuous circle helping ease the squeeze on incomes, while increasing the public finances through greater tax revenues and reduced spending on in-work benefits.

“A £10 per hour minimum wage would mean extra money in people’s pockets which would be spent in communities and on high streets across the UK. It would help breathe life into a flagging economy and make work pay.”