The minimum wage has been cut by between 1% and 2.4%, despite the government claiming that the minimum wage rate increased in October. For workers aged 21 and over, the rate increased from £5.80 to £5.93 an hour – an extra £5.20 a week – but prices are rising at a faster pace. The lowest paid now have less money to spend on basics. According to government statistics, the Consumer Price Index measure of inflation is 3.1%. The Retail Price Index though (which is a more accurate measure of inflation for the low paid) is currently 4.6%. The minimum wage legislation discriminates against young workers (18-21 year olds are entitled to £4.92 an hour and 16 and 17 year olds are entitled to £3.64!) but Tesco’s and Sainsbury’s don’t have lower prices for young people. This cut is hitting the youngest and lowest paid workers in the country. That is why Socialist Youth is campaigning to abolish the youth exemptions and for an immediate increase to £8 minimum wage as a step towards a living minimum wage.
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