Minimum wage rise will drive up benefit bill, living wage could save £2bn

Today the government announced that the national minimum wage will rise to £6.31 in October. If the minimum wage were raised to a living wage, which is currently £8.55 in London however, then the savings to Government through benefits and taxation could total £2.3bn a year.

Jenny Jones commented,

“This decision will leave more than half a million low paid Londoners even further from London’s cost of living. The Mayor should be making the case for a higher level for London to reflect our sky-high rents. He should press the Government to raise the minimum wage to a living wage, saving billions on the benefit bill in the process.”

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