Welfare Reform on the Web (May 2008): Minimum Wage - UK

Employers upset at political use of minimum wage

A. Taylor

Financial Times, Apr. 28th 2008, p. 2

The Chancellor has suggested that changes to the minimum wage system could be used to compensate young low-paid workers who would lose out if the 10p tax rate is scrapped; and John Hutton, secretary of state for business, has asked the Low Pay Commission to look into the options for such changes. Employers' bodies such as EEF (which represents manufacturers) are concerned that the government may be about to use the minimum wage in a political way.