Call for increase in minimum wage to combat in-work poverty

Benefits expert at the University, Professor Peter Taylor-Gooby says a new study showing more than 1 million public sector workers in Britain are paid less than the amount required to make ends meet, trapping them in in-work poverty, highlights the need for a rise in the minimum wage.

The Living Wage Foundation has said as many as 1.2 million people working for the NHS, councils and other public sector employers receive unsustainably low wages of less than £9 an hour, or £10.55 in London.

Professor Taylor-Gooby, of the University’s School of Social Policy, Sociology and Social Research, comments: ‘It is clear 1.2 million public sector workers receive wages so low that they are in poverty even after a full week’s work.

‘This confirms what has been already known from the official statistics. These show that just over two thirds of those below the poverty line live in households where at least one person is in work.

‘The National Minimum Wage, which has not increased in real terms since the days of the last Labour Government, 9 years ago, is simply inadequate. The introduction of Universal Credit (which includes the rent benefits and to top-up the incomes of low paid workers) will only make things worse.

‘The evidence of demands on food banks in areas where Universal Credit is rolled out confirms this. We need an urgent review of the National Minimum Wage and a substantial increase.’