Subscribe to our newsletter

Ending low pay top of Chancellor's agenda in meeting with unions and industry

The government has scheduled talks to address ending low pay and making sure that UK workers get paid fairly for the work they do.

Ending low pay top of Chancellor's agenda in meeting with unions and industry
smsfadviser logo
  • Staff Reporter
  • May 10, 2019
share this article

Representatives from the Confederation of British Industry (CBI), the Federation of Small Business (FSB), Unison and other industry and union bodies will join the Secretary of State for Business, Energy and Industrial Strategy, Greg Clark, for talks hosted by the Chancellor. Top of the agenda will be how the lowest paid continue to see their wages increase.

The talks are part of the government’s ongoing engagement with some of the UK’s biggest trade bodies and unions on the future of the National Living Wage.

The introduction of the National Living Wage in 2016 gave the lowest earners the fastest pay rise in decades. In April 2019 it was increased again, meaning a full-time worker on the National Living Wage is set to earn around £690 more over the coming year.

"Last month we increased the National Living Wage, giving a pay rise to 1.8 million people. By 2020 the National Living Wage will be set at 60% of median earnings," Chancellor of the Exchequer, Philip Hammond said.

He noted that it is now time to go further, with the ultimate ambition to end low wages altogether.

"I’m meeting the leaders of the major trade bodies and unions to discuss how to go further on tackling low pay, while also protecting the jobs of the lowest paid," said Mr Hammond. 

Business Secretary Greg Clark said that the government is committed to ending low pay and making sure that UK workers get paid fairly for the work they do.

Mr Clark revealed that later this year the government will announce a new remit for the Low Pay Commission - the independent body that advises government about the National Living Wage and the National Minimum Wage - for 2020 onwards.

"Today’s meeting, which includes the Low Pay Commission, is just one of many conversations that the government is planning to have with employers and unions over the coming months on this issue," he added. 

In the Spring Statement, the Chancellor also announced that world-leading academic, Professor Arindrajit Dube, will lead a review of the impact of minimum wages internationally, providing evidence for future government changes.

Receive the latest Financial Accountant news,
opinion and features direct to your inbox.

related articles