Click here to skip to content

Welfare Reform on the Web (May 2000): Minimum Wage - UK

THE IMPACT OF THE NATIONAL MINIMUM WAGE IN 1999

Anon

IDS Report, no.802, 2000, p.14-18

Concludes that contrary to some predictions the minimum wage did not lead to a sharp upward trend in average earnings. Predicted job losses also failed to materialise. The new statutory floor to pay had very little impact on differentials.

LABOUR TO RAISE MINIMUM WAGE

K. Maguire and L. Elliott

Guardian, Feb. 15th 2000, p.1-15

Announces government plans to raise the minimum wage by £0.10p per hour from £3.60 to £3.70 for adults in order to placate disillusioned supporters in the traditional Labour heartlands. The Low Pay Commission is to be continued to give annual reviews of the minimum wage. However the government is refusing to bow to pressures for indexing the increases with inflation because of fears about the impact on business.

(See also Independent, Feb. 15th 2000, p.1; Financial Times, Feb. 16th 2000, p.3; Daily Telegraph, Feb. 15th 2000, p.2; Times, Feb. 15th 2000, p.1)

MINIMUM WAGE IS FROZEN TO 'PROTECT ECONOMY'

B. Clement and F. Abrams

Independent, 31st Jan. 2000, p.5

Ministers have decided to freeze the minimum wage at £3.60 per hour and mothball the Low Pay Commission that advises them on it.

(For comment see Independent Review Section, 31st Jan. 2000, p.5)

THE NATIONAL MINIMUM WAGE: THE STORY SO FAR - SECOND REPORT OF THE LOW PAY COMMISSION

London: TSO, 2000 (Cm 4571)

Reports on the progress of the implementation of the National Minimum Wage since its introduction on 1 April 1999. Several years will be needed to assess the full effects of the MNW, but it is clear that a large number of people have benefited. The report concludes that NWW has been introduced successfully with no significant adverse effects on the economy. Low-paying sectors have adopted well. Levels of compliance should be improved, and the minimum wage will need to be uprated.

PORTILLO U-TURN ON BANK AND THE MINIMUM WAGE

R. Shrimsley

Daily Telegraph, Feb. 4th 2000, p.1-2

Michael Portillo announced that the Tories were no longer planning to scrap the national minimum wage and were no longer opposed to the operational independence of the Bank of England.

Search Welfare Reform on the Web