CHANCELLOR Sajid Javid’s announcement that the Tories have set a minimum wage target of £10.50 within five years has been branded a “con” by an SNP MP.
Analysis of the policy, which will see the figure rise from £8.21 to £10.50 by 2024, shows the Tories have just pledged to increase it by 46 pence per year. But that is the exact amount minimum wage was already due to rise by in the next year, with the figure set to grow from £8.21 per hour to £8.67 per hour by 2020. If the minimum wage continued to grow at the level previously set it would reach £10.51 by 2024.
The analysis suggests the target is
not a new policy. SNP MP Stewart McDonald replied to one journalist’s number-crunching, saying: “It’s always a con with the Tories.”
Currently, only over 25s are eligible for the UK Government’s £8.21 minimum wage. Those aged between 21 and 24 receive £7.70 per hour, people aged from 18 to 20 are paid £6.15 per hour, under 18s get £4.35 per hour and apprentices qualify for just £3.90 per hour.
Javid said his “ambitious” proposal – which would also see the age threshold lowered to cover all workers over the age of 21 – would give four million people a pay rise. He said he wanted the National Living Wage to be raised to match two-thirds of median earnings, which would represent a 95p hourly increase in 2024 compared to the current system.
“Over the next five years, we will make the UK one of the first major economies in the world to end low pay altogether,” he said. “To do that, I am setting a new target for the national living wage: raising it to match two-thirds of median earnings. That means, on current forecasts, this ambitious plan will bring the National Living Wage up to £10.50 – giving four million people a well-earned pay rise.”
Only workers aged 25 and over are currently able to receive the National Living Wage, which is set at £8.21. Those 24 and under receive the minimum wage. But Javid said the Government wanted to reward the hard work of millennials and bring down the age threshold to cover all workers over the age of 21.
Javid told the conference the Government was bringing in a “decade of renewal” after the “decade of recovery” under the last Labour government, and promised an “infrastructure revolution” with investment in roads, buses and broadband.
“Our roads are the arteries of our country. We will soon launch the new roads investment strategy with £29 billion committed to strategic and local roads over the next five years,” he said.
“And today we are getting the shovels out early on several important road projects.”
But the SNP warned that the Chancellor must “cough up” Scotland’s fair share in funding for broadband and digital infrastructure – including 5G – and saying that the funding must come directly to Scotland, and not as part of a bidding war that could see Scotland lose out.
Drew Hendry MP warned that Scotland had been consistently short-changed by the Tories at Westminster as they fail time and time again in addressing broadband and connectivity needs across Scotland.
Hendry said: “Time and time again Scotland has been short-changed by the Tory Government in Westminster when it comes to delivering for our communities and regions.
“With the Chancellor’s broadband and connectivity funding announcement, it is high time the Tories coughed up for Scotland’s fair share in funding and made clear that the money will come straight to Scotland, and not as part of a bidding war, which has seen Scotland lose out before.”
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