Consensus On Minimum Wage Threatened - Cable

12.00.00am GMT Tue 18th Mar 2003

Responding to reports that the Government is to announce a 15.5% increase in the Minimum Wage over two years (an increase of 7.1% or 30p per hour this October, and a further increase of 7.5% or 35p per hour next year), Vince Cable MP, Liberal Democrat Shadow DTI Secretary, said:

"The consensus behind support for both the principle of the National Minimum Wage, and the considered way in which it has been handled so far under the Low Pay Commission, is now threatened."

"Making a commitment to a 2-year deal, at levels significantly above inflation and at nearly double the current level of average earnings growth, sets a dangerous precedent at a time of almost unparalleled uncertainty."