Is new living wage gimmicky?

The announcement of the Budget yesterday brought with it a myriad of schemes; plans to curb public spending, increase taxes and promote apprenticeships.

However, by far the most discussed legislation was the unveiling of the ‘national living wage’. The wage, which begins at £7.20 next April and will increase to £9 an hour by 2020, is set to replace the existing pay of £6.50.

Following mass protests and rallies from employees and union charities to improve minimum wage, the Conservative government was under a lot of pressure to acquiesce.  During his speech, Osbourne claimed that this Budget was a one for “working people.” The remark sparked a furious backlash from Labour’s acting leader Harriet Harman, who said: “A Budget for working people? How can you make that claim when you are making working people worse off?

"You are making working people worse off by cutting tax credits and scrapping grants for the poorest students."