‘Is it too much of a stretch to recognise that poverty is the CAUSE of poor growth.’
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The Growth Commission was formed by Liz Truss, following her resignation as prime minister after her chaotic 49 days in government. Truss was in the audience at the Commission’s event, alongside Jacob Rees-Mogg and former Brexit negotiator, Lord David Frost.
Minimum wage rates increased in April. The level is currently set at £10.42 an hour for those aged 23 and over. 21-22-year-olds must be paid a minimum of £10.18 an hour, 18 to 20-year-olds receive £7.49 and under 18s and apprentices have to be paid no lower than an hourly rate of £5.28.
Growth Commission co-chairman, Shanker Singham, said the group was “concerned about how high” Britain’s minimum wage is compared with other countries in the Organisation for Economic Co-operation and Development (OECD).
“There is nothing wrong with the minimum wage. What matters in terms of competition is where it is set,” said Singham.
“What we are intending to do in the UK is move it to 66 percent of median wage, which is far higher than any other OECD country by next year and will be a significant drag on the economy.
“So we are suggesting freezing it and targeting it down to 61 percent.
“Even that small reduction or that small change in minimum wage has a very big impact on GDP per capita, according to our calculations,” he added.
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