Treasury challenged over living wage as 2m paid below minimum level

THE UK Government has been challenged to ensure workers are paid the real living wage by the end of 2021.

Research for the SNP has found that the gap in the minimum wage for younger workers is now at its widest level.

Data from the House of Commons library requested by the party showed the gap between the highest and lowest minimum wage rates has grown almost every year since it was introduced.

In 2000, the difference between those on the lowest and those on the highest level of minimum wage was 12.5 per cent, but this year it is 91.6%. The minimum wage for those aged 25 and older is £8.72 per hour, while 16 and 17-year-olds are entitled to just £4.55. Apprentices have a minimum wage of £4.15.

The SNP said that despite employment law remaining a reserved power for Westminster, Scotland is the best performing of all four UK nations for the percentage of employees paid the real Living Wage or more (84.8%).

Now the party’s financial spokeswoman is demanding that the Treasury work to introduce a real living wage for all workers.

MP Alison Thewliss said: “The Government must finally end decades of age discrimination in UK pay levels by introducing a real living wage for all workers. It is a disgrace that millions of workers are on poverty pay under this broken Westminster system.

“The coronavirus crisis has exposed the deep inequalities ingrained in the UK. The recovery is Scotland’s chance to build a fair, green and equal future as an independent country, with the full powers to introduce a real living wage and boost incomes.

“While powers over employment law remain reserved, there is little hope Westminster will end this blatant discrimination. Younger workers don’t get a discount on their rent, bills or the weekly shop, and they can’t be expected to get by on a pittance.”

According to estimates by the Low Pay Commission, two million workers were paid at or below the minimum wage in April 2019 – about 7% of all UK workers.

A UK Government spokeswoman said: “We are committed to helping ordinary working people with the cost of living. That’s why we are extending the National Living Wage to 23 and 24-year-olds for the first time in April, as well as increasing the minimum wage for the youngest.

“We know young people have been hit especially hard by the crisis, which is why we are providing targeted support to give them the best chance of staying in, or getting into, the workplace.

“This includes the £2 billion Kickstart scheme, increasing the number of apprenticeships, traineeships and work coaches, and continuing to help unemployed people of all ages back to work through the multi-million pound Job Entry Targeted Support programme.”