'Majority of employers believe higher minimum wage could boost productivity'

The report, which is based on a survey of more than 1,000 businesses conducted at the outset of the coronavirus crisis, shows that more than half (54%) support the UK Government’s policy of increasing the national living wage to two-thirds of median income by 2024, with fewer than one in ten (9%) opposing this move.

Most employers who responded to the study produced by Learning and Work Institute and Carnegie UK Trust said that the increase would not have a negative impact on their business, or on wider UK employment. A majority (54%) of businesses said that a higher minimum wage could help boost UK productivity.

Joe Dromey, deputy director for research and development at Learning and Work Institute, said: “Increasing the minimum wage could eradicate low pay, and help to tackle in-work poverty.”

Douglas White, Head of Advocacy at the Carnegie UK Trust, said: “That most employers support a higher minimum wage is encouraging: even before the onset of the pandemic, there were too many workers struggling on low pay.

"The economic challenges caused by COVID-19 means it is even more important that future decisions around the minimum wage are ambitious in delivering better pay for low paid workers, while recognising the real challenges that many businesses are experiencing and providing them with essential support."

Mr White added: “We hope the ideas put forward in our employers’ survey are a helpful starting point for a dialogue about how the Government can pursue its ambition to raise the wage floor without endangering job quality or employment."

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