The Living Wage is rapidly gaining support, among commentators if not employers. But, on left and right, this new recognition of the need to boost Britain’s shrinking wage share has been accompanied by a growing sense that if more businesses were to pay more, the tax credit bill could be substantially cut.
For example, in Monday’s Guardian John Harris wrote that:
…The cost of tax credits, which includes a vast de facto subsidy to poverty pay, runs to just under £30bn. These things denote the deep, structural issues that need to be addressed before any debate about universalism starts.
While in the Telegraph Jeremy Warner, perhaps a surprising advocate of the Living Wage, recently concluded that:
A living wage would obviate the need for in-work benefits – one of the biggest growth areas in welfare spending.
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