Child poverty group welcomes Osborne's minimum wage rise plans
Published by Max Salsbury for 24dash.com in Central Government and also in Finance
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Chancellor George Osborne's recently announced plans to raise the national minimum wage above inflation has been welcomed by the Child Poverty Action Group (CPAG).
Osborne said this week that the economy has recovered to such a point that it is now affordable to raise the NMW, currently set at £6.31p/h, for people aged over 21.
Alison Garnham, CPAG chief executive, said: “This is a very welcome suggestion from the chancellor and it will do a great deal of good both for the poorest working families and for the economy.
“We know that when workers get better pay, not only are they able to better meet their children’s needs but more money flows through their local community as they spend it. This helps jobs and growth and is exactly what we need to get the economy moving in the poorest communities that need it most.
“The Low Pay Commission makes recommendations to government on the national minimum wage, but the final decision lies with ministers, so we hope to see this become a firm commitment very soon.”
The NMW was passed in law in 1998 by the last Labour government - a move that was bitterly opposed by the Tories at the time, who argued that it would destroy job creation.
However, Osborne has admitted that the Conservative Party was on the "wrong side of the argument" during the '90s and had now come see the NMW as a good policy.