Jobs
Labour’s Minimum Wage Plan Becomes Concern for BOE and Business
- Latest 10% increase in pay threshold a strain on companies
- Hikes bring unintended consequences for inflation and benefits
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Britain’s minimum wage increases are threatening to feed through to inflation and unintended consequences for employee benefits, putting Keir Starmer’s ambition to boost wages on a collision course with business groups and the Bank of England.
Business groups are already complaining that the 10% increase in the minimum wage — also known as the national living wage — that came into force in April is putting a strain on corporate budgets and limiting their ability to hire. Starmer’s Labour government, which took power after a landslide election victory last week, pledged to revamp the lower threshold for pay to reflect a “genuine living wage.”