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Labour minimum wage promise would see £8 per hour rate by 2020 | Labour minimum wage promise would see £8 per hour rate by 2020 |
(35 minutes later) | |
The minimum wage would rise to £8 an hour over the course of the next parliament if Labour wins the general election, the party has pledged. | The minimum wage would rise to £8 an hour over the course of the next parliament if Labour wins the general election, the party has pledged. |
Leader Ed Miliband said it was "not good enough" that one in five people in the UK were on low pay. | Leader Ed Miliband said it was "not good enough" that one in five people in the UK were on low pay. |
But the Conservatives said they had already delivered an above-inflation increase as, from October, the minimum wage will rise from £6.31 to £6.50. | But the Conservatives said they had already delivered an above-inflation increase as, from October, the minimum wage will rise from £6.31 to £6.50. |
The minimum wage for adult workers was £5.80 at the time of the last election. | |
Mr Miliband announced the policy in interviews with the Sunday Mirror and Observer newspapers as Labour's annual conference got under way in Manchester. | Mr Miliband announced the policy in interviews with the Sunday Mirror and Observer newspapers as Labour's annual conference got under way in Manchester. |
The party says the £1.50 per hour increase would be worth £60 a week, or £3,000 a year, for the lowest paid. | The party says the £1.50 per hour increase would be worth £60 a week, or £3,000 a year, for the lowest paid. |
"Too often people think that politics doesn't care about them," the Labour leader told the Sunday Mirror. | "Too often people think that politics doesn't care about them," the Labour leader told the Sunday Mirror. |
"They are the wealth creators just as much as the top entrepreneurs and the top business people. And we've got to reward them." | "They are the wealth creators just as much as the top entrepreneurs and the top business people. And we've got to reward them." |
He said the party would show "how we can become a country that rewards hard work once again". | He said the party would show "how we can become a country that rewards hard work once again". |
In the Observer interview he added: "It is not good enough for us that one in five people in our country go out to work, make their contribution and are in low pay." | In the Observer interview he added: "It is not good enough for us that one in five people in our country go out to work, make their contribution and are in low pay." |
But Conservative Culture Secretary Sajid Javid said people would not take "lectures" from Labour on helping people on low pay. | But Conservative Culture Secretary Sajid Javid said people would not take "lectures" from Labour on helping people on low pay. |
"By crashing the economy, Labour made everyone poorer and they haven't learnt their lesson," he said. | "By crashing the economy, Labour made everyone poorer and they haven't learnt their lesson," he said. |
"Ed Miliband would make people worse off with the same failed policies that got us into a mess in the first place - more wasteful spending, more borrowing and higher taxes." | "Ed Miliband would make people worse off with the same failed policies that got us into a mess in the first place - more wasteful spending, more borrowing and higher taxes." |
'Dangerous' | 'Dangerous' |
The Liberal Democrats said the best way to help the low paid was to cut their taxes. | The Liberal Democrats said the best way to help the low paid was to cut their taxes. |
"Labour has refused to back tax cuts for working people," a spokesperson added. | "Labour has refused to back tax cuts for working people," a spokesperson added. |
Meanwhile, Mark Littlewood from free market think tank the Institute of Economic Affairs said the move would be "dangerous" for the economy. | Meanwhile, Mark Littlewood from free market think tank the Institute of Economic Affairs said the move would be "dangerous" for the economy. |
The national minimum wage is the lowest hourly rate at which workers must legally be paid, although there are lower levels for workers aged 18-20, those under 18 and those working on an apprentice scheme. | The national minimum wage is the lowest hourly rate at which workers must legally be paid, although there are lower levels for workers aged 18-20, those under 18 and those working on an apprentice scheme. |
It was introduced by Labour in 1997 and the level is reassessed annually by the Low Pay Commission, which then makes a recommendation to ministers. | It was introduced by Labour in 1997 and the level is reassessed annually by the Low Pay Commission, which then makes a recommendation to ministers. |
October's above-inflation increase of 19p (3%) - announced in March - will be the first time in six years that the rise is higher than inflation. | October's above-inflation increase of 19p (3%) - announced in March - will be the first time in six years that the rise is higher than inflation. |
The rate for 18 to 20-year-olds will go up by 10p to £5.13 an hour, a 2% increase. | The rate for 18 to 20-year-olds will go up by 10p to £5.13 an hour, a 2% increase. |
The rate for those aged 16 and 17 will rise by 7p to £3.79, also a 2% rise. | The rate for those aged 16 and 17 will rise by 7p to £3.79, also a 2% rise. |
Apprentices will earn an extra 5p an hour, taking their wages to at least £2.73. | Apprentices will earn an extra 5p an hour, taking their wages to at least £2.73. |
In August the Consumer Price Index rate of inflation was 1.5%. | In August the Consumer Price Index rate of inflation was 1.5%. |