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The living wage should not be compulsory because it would be a burden on business, says Boris | The living wage should not be compulsory because it would be a burden on business, says Boris |
(about 4 hours later) | |
The living wage should not be made compulsory because it would be a burden on small businesses, Boris Johnson has said. | The living wage should not be made compulsory because it would be a burden on small businesses, Boris Johnson has said. |
The Mayor of London has previously said the policy should be “massively expanded” nationwide and be “one of the great national ambitions”. | The Mayor of London has previously said the policy should be “massively expanded” nationwide and be “one of the great national ambitions”. |
He however this morning rejected calls for the Government to legislate to raise the minimum wage up to the level. | He however this morning rejected calls for the Government to legislate to raise the minimum wage up to the level. |
“I don’t want the living wage to be made absolutely compulsory,” he told LBC Radio on Wednesday. | “I don’t want the living wage to be made absolutely compulsory,” he told LBC Radio on Wednesday. |
Living wage pay for cleaners in Central London has been one of campaigners' core demands “If you talk to a lot of people who’ve really led on this, London Citizens, the people who many years ago got this movement going , they don’t want it made compulsory. | Living wage pay for cleaners in Central London has been one of campaigners' core demands “If you talk to a lot of people who’ve really led on this, London Citizens, the people who many years ago got this movement going , they don’t want it made compulsory. |
“They don’t want every single small business to be obliged by law to pay something that might really damage their ability to survive.” | “They don’t want every single small business to be obliged by law to pay something that might really damage their ability to survive.” |
Some campaigners and politicians have called for the living wage to be made compulsory on the basis that voluntary adoption is rare. | Some campaigners and politicians have called for the living wage to be made compulsory on the basis that voluntary adoption is rare. |
An investigation conducted in March found that not a single high street chain had signed up to provide the voluntary rate, despite posting huge profits. | An investigation conducted in March found that not a single high street chain had signed up to provide the voluntary rate, despite posting huge profits. |
In October last year the Coalition Government’s social mobility tsar, former Labour minister Alan Milburn, said the wage should be made compulsory. | In October last year the Coalition Government’s social mobility tsar, former Labour minister Alan Milburn, said the wage should be made compulsory. |
The major parties have shied away from raising the minimum wage to the rate, however. Before it lost the election, Labour said it would only raise the minimum wage to £8 an hour by 2019. | |
The party also offered tax breaks to firms who adopted the wage. George Osborne has committed his government to only raising the minimum wage above inflation. | The party also offered tax breaks to firms who adopted the wage. George Osborne has committed his government to only raising the minimum wage above inflation. |
One Labour leadership contender, Liz Kendall, has proposed that the Low Pay Commission be given power to lobby businesses to voluntarily introduce the wage. | One Labour leadership contender, Liz Kendall, has proposed that the Low Pay Commission be given power to lobby businesses to voluntarily introduce the wage. |
The living wage is an hourly pay rate set independently and updated annually, calculated according to meeting basic living costs in Britain. | The living wage is an hourly pay rate set independently and updated annually, calculated according to meeting basic living costs in Britain. |
The rate is currently £7.85 an hour in the UK and £9.15 in London, where living costs are higher. | The rate is currently £7.85 an hour in the UK and £9.15 in London, where living costs are higher. |