A higher rate

In May 2020, TUC research showed that an estimated 38% of keyworkers, who have been so essential to keeping the country going during the pandemic, were paid less than £10 per hour. The report, A £10 minimum wage would benefit millions of key workers, showed that a rise to £10 would immediately benefit nine million people — one in three employees.

A second TUC report in September 2020, The government must give key workers a pay rise and tackle insecure work, argued that the recent increases in the NMW had demonstrated there was room for a more ambitious wage floor. It pointed out that until the COVID-19 crisis, employment had increased alongside increases in the minimum wage. This, it said, lined up with international evidence which shows “a very muted effect of minimum wages on employment, while significantly increasing the earnings of low paid workers.”

The TUC report concluded, “These economic circumstances are challenging for many businesses and many firms will face difficult choices. But without wage protections we know it is often low paid workers who suffer — while shareholder dividends and executive pay continue to rise. We are not in a crisis caused by wages that are too high, nor in one that can be resolved with lower wages.” 

For more on union arguments on raising the NMW see Chapter Seven.