Minimum wage is blunt instrument

The Daily Telegraph features comments from Mark Littlewood

The Government on Monday revealed the minimum wage would increase from October by 12p an hour to £6.31 for adults. The youth minimum wage, for 18 to 20-year olds, is to also rise by 5p to £5.03 and by 4p to £3.72 for 16 and 17-year olds, the Department for Business said.

Even the amount for apprentices, currently at £2.65 an hour, will rise by 3p, the Government said, as it rejected a recommendation from the Low Pay Commission to freeze the rate.

Industry groups claimed the decision to increase the adult minimum wage would be bad for business.

Elsewhere Mark Littlewood, director general at the Institute of Economic Affairs, said the minimum wage was a “blunt instrument”, adding that any rise would be “illogical” as it makes it harder for those out of work to get their feet onto the employment ladder.

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