Living Wage 'may do more harm than good'

The plans for the Living Wage may do more harm than good, thinks the Director General of the Institute of Economic Affairs.

Mark Littlewood said:

The so-called living wage may do more harm than good.

Highly successful, blue chip companies may well be able to sign up to the scheme fairly effortlessly.

Public authorities can also do so and simply pass the bill on to the taxpayer.

There is, however, a danger that naming and shaming companies unable to meet higher wages will depress job creation particularly in the poorer parts of the UK.

London is singled out for special treatment, but it is assumed that there are no differences between Bradford and Bath or between Winchester and Wolverhampton.

This is evidently absurd.

– Mark Littlewood, Director General of the Institute of Economic Affairs

Advertisement

London Living Wage up to £8.55

The Living Wage rate for workers in the capital is to increase by 25p an hour to £8.55, the Mayor of London has announced. Labour leader Ed Miliband is to unveil plans for a national equivalent of £7.20 per hour.