Shadow chancellor John McDonnell trumps Osbourne's £9 National Living Wage by 2020
Less than 48-hours after Jeremy Corbyn was sensationally elected as leader of the Labour Party, shadow Chancellor John McDonnell has announced that a Labour-led government would introduce a £10 minimum wage.
The announcement trumps George Osborne’s pledge that next year’s new National Living Wage would reach £9 by 2020
McDonnell said: 'Labour will bring down the welfare bill, not by punishing the most vulnerable but through supporting a higher wage economy, introducing a real £10 an hour living wage, tackling high rents by addressing the housing crisis and supporting stronger trade unions to drive up pay.”
He claimed the Institute for Fiscal Studies has already calculated cuts to the welfare bill (being debated in Parliament today) were “arithmetically impossible” to be made up by the new National Living Wage.
The announcement also comes as the Resolution Foundation today published its own report into the National Living Wage, where it claimed most employers would see their wage bill go up by only 0.6% (or less) when the new minimum level of pay comes into effect next April.
It said the UK’s total wage bill will increase by just £1.5bn, or 0.2%.