COVENTRY South MP Zarah Sultana has headed a new report making the case for a £15-an-hour minimum wage to tackle the cost of living crisis.
The ‘Case for a £15/hour Minimum Wage’ was published by the Progressive Economy Forum (PEF) and found 14million people would see a pay increase under the proposals.
The research concludes that this would correct low-paid employees’ losses over the last ten years and shift the labour market away from low-paid insecure work.
The report added the move would protect living standards from inflation and help with the cost-of-living crisis.
The PEF model would see a 6.9 per cent increase in forecast incomes for the poorest 70 per cent of households, as well as raising a further £32.7billion in taxes through income and National Insurance contributions.
It is also projected to save the Government £4.2billion on income-contingent benefits payments.
The authors of the report propose phasing in the move over the next two years to give businesses more time to adjust.
They also recommend the extra tax income should be used to compensate smaller businesses for their higher costs.
Progressive economy forum’s director and co-author of the report James Meadway said: “Despite living in one of the richest countries on the planet, too little of Britain’s wealth goes to its workers.
“This research shows that a £15-an-hour minimum wage is affordable and would be a huge boost for millions at a time of rapidly rising prices.”
Ms Sultana added: “Energy bills are soaring, food prices are rocketing, but wages are standing still.
“The national minimum wage simply isn’t enough and more and more people are facing poverty pay.
“This ground-breaking research shows a significant rise in the minimum wage would give a real pay rise to nearly 14million people, lifting families up and down Britain out of poverty and making a massive difference to almost half of workers in the West Midlands.
“The Tories like to talk about ‘levelling-up’, but a £15-an-hour national minimum wage by 2024 would do it.”
