PRESS RELEASE 24 May 2001

Who is afraid of the NMW?
LPU election briefing

The first analysis of the political parties' manifestos by the Low Pay Unit shows huge differences in the three main parties policies on the National Minimum Wage (NMW).

The Conservative manifesto makes no reference to the NMW, despite Michael Portillo's pledge last year that a Conservative government will not repeal the NMW Act. Instead the manifesto continues to promote a programme of deregulation that did so much harm to low paid workers and their families throughout the 1980's and 1990's.

The Liberal Democrats promise an annual review of the rate and to extend the adult rate to all workers aged 16 and over. This would guarantee that the NMW does not lose its value year on year and would remove the current age discrimination.

The Labour manifesto includes raising the NMW to £4.20 as one of its "25 steps to a Better Britain". The same promise appears on its pledge card. The prominence given to increases in the NMW confirms its popular appeal, but at the same time betrays Labour's caution. The £4.20 rate will not be introduced until 2002 subject to economic conditions. Its commitment to rewarding work focuses more on raising incomes through tax credits than on increasing wages.

Bharti Patel, director of the Low Pay Unit, said:
"It is not inevitable that the UK must have large numbers of workers being paid low wages. As the last government committed itself to eradicating child poverty, so the next should commit itself to tackling one of the root causes of that poverty, low pay.

We call on the Conservative Party to be honest about their plans for the NMW; the Liberal Democrats to commit to eradicating low pay. And to Labour we say: 'if a small rise in the minimum wage is a step in the right direction, we say bigger steps,better Britain."

For further information and full briefing call:
Bharti Patel Director, 020 7435 4268 or 07887 567 494
Jeff Masters, employment policy officer, 020 7435 4268 or 020 7582 4221