The toxic politicising of the National Minimum Wage

Abstract

Purpose After 15 years of successful operation, the British Low Pay Commission’s management of the National Minimum Wage was threatened in 2015 by the government’s introduction the National Living Wage. The purpose of this paper is to consider the underlying principles of previous minimum wage fixing, and the additional thinking of the Living Wage Foundation and the review of the issue by the Resolution Foundation. Design/methodology/approach The paper draws on the 2016 reports of the Commission to argue that the two statutory wages are unavoidably interlinked and are tied to incompatible criteria. Findings The paper concludes that the predicted eventual impact of the National Living Wage on the labour market will be unsustainable. Research limitations/implications The paper is relevant to minimum wage research. Practical implications The paper is relevant to minimum wage policy. Social implications The paper is relevant to low pay policy. Originality/value The paper provides original analysis of minimum wage policy.