CPAG statement on Chancellor's NMW comments

Published on: 
16 January 2014

Responding to the Chancellor George Osborne’s comments this afternoon on increasing the minimum wage above inflation, Alison Garnham, Chief Executive of Child Poverty Action Group, said:

“This is a very welcome suggestion from the Chancellor and it would do a great deal of good both for the poorest working families and for the economy.

“We know that when workers get better pay, not only are they able to better meet their children’s needs but more money flows through their local community as they spend it. This helps jobs and growth and is exactly what we need to get the economy moving in the poorest communities that need it most.

“The Low Pay Commission makes recommendations to government on the national minimum wage, but the final decision lies with Ministers, so we hope to see this become a firm commitment very soon.”


Notes to Editors

• The NMW went up by 8.8% between October 2009 and October 2013 (from £5.80 to £6.31). But prices went up by 13.7% in the same period (on the government’s preferred CPI measure). If the NMW had gone up with prices during that same time period, it would now be worth £6.60. Therefore, an increase of £0.29 would get the NMW back to what it was worth in October 2009. However, CPAG believes that there is a strong case for raising the minimum wage further above inflation over time to reach living wage levels. For more information on the Living Wage please visit

• CPAG is the leading charity campaigning for the abolition of child poverty in the UK and for a better deal for low-income families and children.

• CPAG is the host organisation for the Campaign to End Child Poverty coalition, which has members from across civil society including children’s charities, faith groups, unions and other civic sector organisation, united in their campaigning for public and political commitment to ensure the goal of ending child poverty by 2020 is met.

For further information please contact:

Tim Nichols

CPAG Press Officer

Tel. 020 7812 5216 or 07816 909302

[email protected]