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Labour eyes higher minimum wage for financial firms

Labour leader Ed Miliband is considering a higher national minimum wage for certain industries such as financial services.

Speaking to the BBC at the Labour party conference in Brighton yesterday, Miliband said he will look at increasing the minimum wage but only in a “responsible way”.

The minimum wage is set to increase by 12p to £6.31 an hour for adults and 5p to £5.03 for 18 to 20 year olds from October.

Miliband said: “We are looking at two sets of issues; firstly, the value of the minimum wage and the second issue is whether there is a case for certain sectors, like finance for example, for having a higher minimum wage. I say that because the minimum wage must be set a level where it is not going to cost jobs, which is really important.”

Miliband set out plans for tougher enforcement of the minimum wage, saying the maximum £5,000 fine for breaching rules is ”not right”.

He promised to strengthen enforcement and hit out at the lack of prosecutions for employers not paying the minimum wage.

He also pledged not to borrow to pay for more day-to-day spending and rejected Treasury claims his plans have a £27bn black hole.

Miliband also hinted that a future mansion tax of 1 per cent of properties worth more than £2m could apply on the full cost of the home and not just above £2m.



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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Not necessarily a problem or a burden on employers – just scrap AE. That should cover it. Otherwise what will you achieve? Higher salary costs from NI, AE and your Min Wage. Result – higher unemployment and more outsourcing to the third world. Nor to mention the enlargement of the Black Economy.

    Plea to ALL politicians. Please don’t try and get clever and walk and chew gum at the same time.

  2. I don’t have any problem with a higher minimum wage. We’ve always paid well in excess of it anyway even though we’re in a low-wage town and could no doubt get away with paying less. When I see bosses underpaying their people, when they could obviously afford to pay more, I always think they lack self respect. Societies that promote vast inequality of wealth are headed for catastrophe.

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