How many people have benefited since the minimum wage was introduced in 1999?
Somewhere between 4% and 6% of the workforce – around five million jobs – have benefited. This is less than the 9% the Low Pay Commission originally intended to reach and the UNISON submission calls on the commission to review why it has consistently overestimated the number of jobs likely to benefit from the minimum wage. The economy has performed reasonably well since 1999 and the minimum wage has not led to job losses, as critics predicted. Shouldn’t the rate be higher? UNISON considered a variety of factors when calculating a target rate for the minimum wage. Half male median earnings will reach about 6.43 in 2006. Tax credits are effectively setting an hourly rate of 6.50 for those who qualify. The Family Budget Unit calculates a single earner with a partner and two children needs 7.75 an hour to maintain a “low cost but acceptable” standard of living. A single adult with no dependants needs 5.82 an hour, After considering all these factors, UNISON believes the minimum wage should
