The government of the United Kingdom says that is trying to encourage people back to work and reduce dependence upon state benefits. To do this, most of the emphasis has been on reducing benefits. I believe that rather than the stick of reducing benefits, more could be achieved by the carrot of increasing the minimum wage. In turn this would reduce our benefits bill and increase our national income through Income Tax, National Insurance, Value Added Tax etc.
There are about 1,350,000 people in Britain who only receive the minimum wage with a further 4 million earning less than a “living wage” (see below). Because it is impossible to support a family on this level, a great number of these will also be receiving state benefits. It is wrong that we, as taxpayers, should be subsidising companies who fail to pay a living wage to their workers. Continue reading “Why we should increase the minimum wage (UK)”