Why the English have decided to increase their minimum wage – Challenges.fr

The UK increases the 1 ^st in April its minimum wage by 7.5%, a sharp and unprecedented increase, is it a surprise?

in fact it goes from 6.70 gross pounds per hour to 7.20 (9 euros at current exchange rates). This increase does not mean a surprise: it was expected. George Osborne, Chancellor of the Exchequer, had announced in December. He even wants to continue this increase steadily in the next 5 years to reach a minimum wage of 9 pounds in 2020.

This objective anchor therefore in a political project of the Conservative government …

Policy and economic, yes. In fact, in its initial project George Osborne wanted, in exchange for the minimum wage increase, gradually reduce the tax credit paid to households earning the lowest income tax credit that weighs on the financial statements. But face resistance of the Labour Party and some Conservative MPs, he gave up challenging the tax credit but kept the minimum wage increase. His bet is to make sure that with rising purchasing power and good health of the economy, the overall amount of the tax credit will eventually fall.

The Kingdom Kingdom has a single minimum wage, but many, including young people. Do they all rose today?

We do have 5 minimum wages and only those over 25 years increased the 1 ^st of April. The gross hourly minimum for apprentices remained at 3.30 pounds (4.10 euros), one for under 18 to 3.87 pounds (4.83 euros), that of 18-20 years to 5.30 pounds (6.60 euros). Finally the minimum salary schedule from 21 to 24 years has been maintained at the level of the general minimum wage before the increase, that is to say 6.70 pounds (8.3 euros).

the rise of the British minimum wage she will have a negative impact on employment?

This is a recurring fear, which has resulted in an intense political battle in 1998, when Tony Blair, then Prime Minister, introduced the minimum wage under the influence of Gordon Brown, his chancellor of the exchequer. Overall in 2016, economists do not express fear for jobs, employers either, except the owners of hospitality and commerce, and the public. Indeed nurses or carers are often paid by local governments, whose budget has already been cut by saving measures George Osborne.

If we take the figures of Eurostat, the British minimum wage for over 25 years is now higher than that of France. Do you agree with this interpretation?

Yes and no. In absolute terms, yes, the minimum wage in the UK is the 7th place after the Crescent -in order Germany, Belgium, the Netherlands, the United Kingdom, Ireland and Luxembourg. Calculated by purchasing power parity, however, I do not agree: the French minimum wage was 20% higher than the UK before rising. Now it is roughly 10%.

The rather strong increase of the minimum wage in Britain after the introduction last year of a generalized minimum wage to 8.50 euros Germany have they or will they have an impact on other countries in Europe?

No, because minimum wages relate to tertiary jobs, unskilled and local in areas which are not subject to competition from other countries.

22 of the 28 countries in the EU have a minimum wage. Who does not and why?

You have a first group of developing countries with Cyprus and Italy. And a second group with Northern Hemisphere countries: Austria, Denmark, Finland and Sweden for which the exception is explained easily. They have very effective social partners. They do not need government measures to have acceptable salaries.