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Business groups react to Labour's minimum wage proposal

20 May 2014

Plans for reform were set out this week after a low-pay review commissioned by the Labour party.

Full figures will not be announced by Ed Miliband until before the general election next year, but amounts around 60% of average earnings have been suggested by others.

Mr Miliband said: 'This gets at a terrible scandal in this country of 5 million in low-paid work unable to make ends meet. We have got to tackle it and I just don't think we can carry on as we are. The minimum wage has done a good job in tackling the worst of exploitation but we have now got to tackle low pay'.

Frances O'Grady, General Secretary of the Trades Union Congress (TUC), welcomed the call for higher minimum wages in the low-pay review, saying: 'The minimum wage grew from a union campaign to a landmark achievement of the last Labour government. Now after years of real wage cuts, we need to see far greater ambition to achieve fair pay'.