Make work pay

Labour want to make work pay by increasing the National Minimum Wage to £8 per hour by 2020 and promoting the Living Wage.




In the UK today, too many people do a hard day’s work but are still living in poverty or dependent on in-work benefits.

Over five million people are in low paid jobs, and more than a quarter of a million people are still estimated to earn less than the National Minimum Wage.

The problem of low pay has got worse under the Tories. The value of the National Minimum Wage has fallen by five per cent since 2010, and official figures shows that without action to tackle low wages, spending on tax credits for people in work is set to rise by an estimated £2.5 billion over the next Parliament. The Tories won’t taken action to help those on low pay – they only stand up for the privileged few.

Labour introduced the National Minimum Wage – it’s one of the proudest achievements of the last Labour Government. But we still need to do more to tackle the problem of low pay in our economy. Labour believes that a sustainable recovery relies on work that pays for the many, not just a few at the top. We will build an economy that works for working people, by taking action to tackle the low pay and insecurity that is fuelling the cost-of living crisis.

Labour has a plan to make work pay:

-    We will increase the National Minimum Wage to £8 per hour by 2020.

-    We will increase fines for employers who fail to pay the minimum wage and give local authorities a role in enforcement.

-    We will introduce ‘Make Work Pay’ contracts, giving a tax rebate to those companies that sign up to become living wage employers in the first year of the next Parliament.

-    We will provide tax breaks to firms that boost pay through the Living Wage.

-    We will require listed companies to report on whether or not they pay the Living Wage.

-    We will use government contracts to spread payment of the Living Wage, following the lead of Labour Councils across the country.

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