Welfare reform on the Web (February 2007): Minimum wage - UK

The business case for the living wage

D. Littman

Working Brief, issue 180, 2007, p.16-19

Research suggests that the minimum income needed by a family or individual to ensure good health, adequate child development and social inclusion is far in excess of the current minimum wage of £5.35 per hour. This article argues that paying a living wage would benefit employers by improving staff retention, reducing absenteeism and enhancing the reputation of the firm. It also improves the quality of life of staff and makes work a genuine route out of poverty.