Employers’ duty to pay higher wages
The Conservatives’ surprise policy of raising the national minimum wage is no longer a surprise, thanks to Rachel Sylvester’s column in The Times today (pay wall), but it is still a good idea.
The policy might have been a good idea at the start of this Parliament, as it would have helped pump demand into the economy, and might not have suppressed the increase in number of jobs, but it is more likely to be a good idea now, because the recovery seems more secure.
What really is a surprise, though, is the outbreak of what Number 10 calls Hollibandisme in Iain Duncan Smith’s department. IDS is keen on the policy because it would cut the tax credit bill. Sylvester quotes a Department for Work and Pensions source:
Employers at the moment are being subsidised by the welfare budget because they are not paying people enough. Some of these companies have very high profits. It’s their responsibility to pay higher wages so people can stand on their own two feet.
If Ed Miliband said that, I would mock. But because it is IDS, I’ll say it is clever Conservative positioning.Tagged in: Iain Duncan Smith, minimum wage, rachel sylvester
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