Responding to calls by the TUC to increase public sector pay and the minimum wage, James Heywood, Head of Welfare and Opportunity at the Centre for Policy Studies, said:

“At a time when workers in the private sector are losing their jobs and seeing their wages cut, we cannot justify generous pay rises across the public sector. Now is the time to show restraint and get public spending back under control if we are to reduce the structural deficit which the pandemic is likely to have opened up.”

“The TUC’s plan to increase the minimum wage to £10 an hour, for all ages, would hit precisely those sectors, regions and age groups they claim to want to help. This move would not only increase unemployment, it would also increase costs for businesses and make them less likely to create new jobs or hire younger, less experienced, workers. Rather than increasing the cost of employment, we should be cutting it by reducing employers’ national insurance contributions.”

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