The power to set the living wage – would you want it? |
As the National Living Wage increased again on the April 1, the response from all sides was familiar.
Ministers make the announcement saying that work should pay, campaigners welcome the increase but insist it still does not match the real cost of living and employers warn that they are being squeezed from every direction.
These can all be true at the same time. The pressure on workers is obvious as households have seen the cost of food, rent, childcare, heating and transport all increase in recent years with constant talk of a “cost of living crisis”.
For businesses, particularly in sectors such as hospitality, retail and care, there is equal pressure.
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Many are working in narrow margin industries and are trying to stay viable while paying more for staff, stock and premises.
This policy also raises politically interesting points for Stormont. In addition to the question of whether the wage floor should rise, there is the separate issue of whether the Executive should have the power to set the rate itself.
An initial response would be that this sounds like common sense.
The North has its own labour market, its own economic structure and its own political institutions. Why should such an important lever be fixed in Westminster, when so many of the consequences are felt locally?
The appeal is obvious, devolving minimum wage........