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Ed Miliband sets out Labour's minimum wage plans Ed Miliband sets out Labour's minimum wage plans
(35 minutes later)
Ed Miliband says a Labour government would set a statutory minimum wage target linked to average earnings, as he set out plans to tackle low pay.Ed Miliband says a Labour government would set a statutory minimum wage target linked to average earnings, as he set out plans to tackle low pay.
The party will announce an exact figure - covering the years 2015 to 2020 - nearer the general election.The party will announce an exact figure - covering the years 2015 to 2020 - nearer the general election.
Mr Miliband said it was a "scandal" that there were five million people in work who "can't make ends meet".Mr Miliband said it was a "scandal" that there were five million people in work who "can't make ends meet".
Both the Conservatives and Liberal Democrats have already said they want a rise in the minimum wage.Both the Conservatives and Liberal Democrats have already said they want a rise in the minimum wage.
However any major increase is likely to be criticised by business groups worried that it would drive up costs and damage competitiveness.However any major increase is likely to be criticised by business groups worried that it would drive up costs and damage competitiveness.
Mr Miliband said there would always be voices against change, but insisted it was "time to raise our sights" on tackling low pay.
The Prime Minister's official spokesman said Downing Street believed that as a result of economic growth there could be a real terms increase in the level of the minimum wage, but that it should remain a matter for the Low Pay Commission to recommend its level.The Prime Minister's official spokesman said Downing Street believed that as a result of economic growth there could be a real terms increase in the level of the minimum wage, but that it should remain a matter for the Low Pay Commission to recommend its level.
The Labour leader has unveiled a report by Alan Buckle, the former deputy chairman of KPMG International, which details proposals to overhaul the Low Pay Commission. Mr Miliband said there would always be voices against change, but insisted it was "time to raise our sights" on tackling low pay.
Mr Miliband has pledged to increase the national minimum wage so it gets closer to average hourly earnings. He said Britain's future lay in higher productivity, skills and wages.
'Hard day's work' The Labour leader today unveiled a report by Alan Buckle, the former deputy chairman of KPMG International, which details proposals to overhaul the Low Pay Commission.
In a speech to party activists in the West Midlands at the launch of a report by Alan Buckle, the former deputy chairman of KPMG International, Mr Miliband said it was a "basic right" that hard work should be rewarded with fair pay. The Buckle report sets out a new framework for the commission with a five-year target to increase the minimum wage, and a strengthened role in tackling poverty and raising productivity.
It calls for greater powers for HMRC and local councils to tackle the 300,000 people illegally not paid the national minimum wage, and for the government to take the lead in becoming a "living wage" employer.
Mr Buckle said a clear, long-term goal to increase the minimum wage over the lifetime of a parliament was achievable and would be good for citizens, business and government.
In a speech to party activists in the West Midlands at the launch of the report, Mr Miliband said it was a "basic right" that hard work should be rewarded with fair pay.
He said Labour's plan would restore "the basic bargain linking hard work to economic security".He said Labour's plan would restore "the basic bargain linking hard work to economic security".
"For the first time we will say workers on the national minimum wage will never be left behind the rest of the economy," Mr Miliband said.
Labour will not say what the final level for the minimum wage would be, but a source said it would be a "stretching target".Labour will not say what the final level for the minimum wage would be, but a source said it would be a "stretching target".
Addressing party activists, Mr Miliband said: "This is the generational question, and it goes beyond party, it goes beyond one government, it goes much deeper than that.Addressing party activists, Mr Miliband said: "This is the generational question, and it goes beyond party, it goes beyond one government, it goes much deeper than that.
"It is about who we are as a country, who we recover to be.""It is about who we are as a country, who we recover to be."
'Terrible scandal''Terrible scandal'
Mr Miliband said only the Labour Party could address the problem, claiming the Conservatives "do not get" it. Mr Miliband said: "It is time to write the next chapter in the battle with low pay. And that is what our economy demands, because work doesn't pay for enough people."
"It is time to write the next chapter in the battle with low pay. And that is what our economy demands, because work doesn't pay for enough people." He added: "The minimum wage will rise by more than average earnings in the economy as a whole as part of a five-year ambition to restore the link between doing a hard day's work and building a decent life for your family."
He added: "We will set a target for the next parliament about the level the minimum wage should reach by 2020.
"The minimum wage will rise by more than average earnings in the economy as a whole as part of a five-year ambition to restore the link between doing a hard day's work and building a decent life for your family."
Earlier, Mr Miliband told BBC Radio 4's Today programme: "This gets at what is a terrible scandal in this country, which is that we have still five million people in paid work unable to make ends meet...Earlier, Mr Miliband told BBC Radio 4's Today programme: "This gets at what is a terrible scandal in this country, which is that we have still five million people in paid work unable to make ends meet...
"We've got to go further in tackling the problem of low pay.""We've got to go further in tackling the problem of low pay."
Mr Miliband said he wanted the minimum wage to rise in proportion to average earnings during the next parliament.Mr Miliband said he wanted the minimum wage to rise in proportion to average earnings during the next parliament.
He emphasised that he was setting out a "framework" rather than an exact figure, and that Labour would consult businesses.He emphasised that he was setting out a "framework" rather than an exact figure, and that Labour would consult businesses.
'Unpredictable'
Liberal Democrat Business Secretary Vince Cable has also proposed setting a long-term target and Chancellor George Osborne has called for the minimum wage to rise to £7 an hour.Liberal Democrat Business Secretary Vince Cable has also proposed setting a long-term target and Chancellor George Osborne has called for the minimum wage to rise to £7 an hour.
The minimum wage will increase by 19p an hour to £6.50 from October.The minimum wage will increase by 19p an hour to £6.50 from October.
Katja Hall, chief policy director of the CBI business group, told Today: "I think we need to recognise that the system we have at the moment has been really successful and that system involves the setting of the minimum wage by an independent Low Pay Commission.Katja Hall, chief policy director of the CBI business group, told Today: "I think we need to recognise that the system we have at the moment has been really successful and that system involves the setting of the minimum wage by an independent Low Pay Commission.
"They have done a really good job and we think it's much better the job is left to them rather than given to politicians.""They have done a really good job and we think it's much better the job is left to them rather than given to politicians."
Mr Miliband said the European Parliament election this week was "very unpredictable" and that the recent increase in support for the UK Independence Party was due to "discontent with the system".Mr Miliband said the European Parliament election this week was "very unpredictable" and that the recent increase in support for the UK Independence Party was due to "discontent with the system".
It was up to Labour to show voters that the country "can be better" in the run-up to next year's general election, he added.It was up to Labour to show voters that the country "can be better" in the run-up to next year's general election, he added.
BBC political editor Nick Robinson said that if, after four years of austerity, Mr Miliband did not win what is a national election, he would "have some questions to answer".BBC political editor Nick Robinson said that if, after four years of austerity, Mr Miliband did not win what is a national election, he would "have some questions to answer".
Are you working on minimum wage or run a business employing people on minimum wage? How would the proposed changes affect you? You can email your experiences to haveyoursay@bbc.co.uk, using the subject line 'Minimum wage'.Are you working on minimum wage or run a business employing people on minimum wage? How would the proposed changes affect you? You can email your experiences to haveyoursay@bbc.co.uk, using the subject line 'Minimum wage'.