A ‘Triple Lock’ for the National Minimum Wage

MoneyOne of the things that we here a lot about, from all side of the political spectrum, is about looking after the senior citizens in our society.

And, the Conservatives, along with the Liberal Democrats have pushed this agenda over the course of the last parliament – including the ‘triple lock’ on pensions – a guarantee that state pension payments will rise by the average salary rise in the UK, inflation or 2.5% – whichever is higher.

Labour have supported this and I’m a big supporter of this.  But we are forgetting one thing – it’s not just pensioners that could’ve been having a potential tricky time financially.

In the past, pensioners have been almost universally poor.  Things have progressed since then, and today’s current pensioners, including what will likely be one the few last waves of people lucky enough to have a final salary pension, have some of the highest incomes and assets in our society – which is absolutely nothing to complain about.

I’m glad that pensioners are no longer destitute having worked most of their lives – they deserve money and time to enjoy their retirement – of course they do.

However my message is:

Whilst the increases in wealth of pensioners is welcome, we shouldn’t be ignoring the plight of younger people who are still working.

On the whole, wages have stagnated now for a long 7 years – with some seeing pay cuts.  Inflation has far outstripped many people’s pay rises (if they have had any at all) and this has lead to a cost of living crisis among today’s generation of British workers.

The triple lock on pensions must stay.  However, the hard working taxpayers of this country deserve a break.  They bailed out the banks and rescued them and the recovery has been built on the backs, the effort and the blood, sweat and tears of these workers.  Now that the economic forecast doesn’t look as gloomy, it’s now time to repay the hard working people of our country.

My pledge, if I was elected, would be:

To introduce a ‘triple lock’ on the National Minimum Wage over the course of the next parliament (5 years).

This would guarantee, that under my government, National Minimum Wage would be guaranteed to rise each year of that parliament by the highest of:

  1. The recommendation of the Low Pay Commission (LPC)
  2. Inflation
  3. 2.5%

This would form part of my government’s ambition to reward the hard working people of the UK and move the National Minimum Wage (NMW) towards to the Living Wage.