Raising salaries to the Living Wage does not take into account "the effects in wages might have on the job opportunities of the lowest paid," according to the Business Secretary.
Vince Cable hinted raising salaries to the Living Wage may have a detrimental effect on low-paid workers and said:
– Vince Cable
The Government supports businesses who voluntarily pay the Living Wage where it is affordable and doesn't cost jobs.
Unlike the minimum wage, which is carefully set by the independent Low Pay Commission, the Living Wage does not take into account the effect rises in wages might have on the job opportunities of the lowest paid.
To increase living standards, the Government has cut taxes making the average person £800 better off and taking 3.2m people out of tax all together, and from this October, those on the national minimum wage will see the first real increase in take home pay since 2008.