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Call to increase Scots minimum wage

Written By blogger on Tuesday, June 3, 2014 | 10:49 PM

An expert group on welfare set up by the Scottish government has recommended a substantial rise in the minimum wage.

It said, if Scotland votes for independence, the rate received by the lowest paid should go up by more than £1 per hour.

The experts argued that the move would increase tax revenues.

Labour has responded that some of the changes could come without independence and that the United Kingdom protects Scottish welfare spending.

The recommendation from the Scottish government's advisory group is that the minimum wage should match what is known as the living wage within five years of independence.

That would represent an rise from £6.31 to £7.65 per hour.

Their report argues that tax revenues would increase as a result by £280m annually.

They said the cost to employers could be eased by staged reductions in their National Insurance contributions.

Other recommendations included:

  • increasing benefits in line with inflation
  • scrapping work capability assessments and the current benefit sanctions regime
  • increasing cash for carers, so they receive the same rate as job seekers

The Scottish government has yet to respond to the full report, although it has already backed an increase in the carer's allowance.

That could be done without independence, Labour has said, and it argues that Scottish welfare spending is best protected as part of the larger UK economy.


Call to increase Scots minimum wage

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