27 September 2016
Labour would introduce a “real living wage” of at least £10 an hour in 2020 if in power, shadow chancellor John McDonnell has announced.
The announcement was made yesterday by McDonnell, who said it was “the level needed for a decent life” and that under a Labour government “everyone will earn enough to live on”.
A new National Living Wage, which came into force in April, requires employers to pay workers over 25 at least £7.20 an hour, rising to £9 by 2020.
Mr McDonnell told conference that the Living Wage — currently £7.20 per hour for workers aged over 25, £6.70 per hour for those aged 21 to 24, and £5.30 per hour for ages 18 to 20 — was too low.
He said 200,000 workers were getting less than the legal minimum.
And he got a standing ovation after ending his speech by saying of his policy programme: “In this party you no longer have to whisper it – it’s called socialism.”
The shadow chancellor – a key ally of leader Jeremy Corbyn on the left of the party – also announced plans to “end the social scourge of tax avoidance” by doubling the number of HMRC staff working in this area and banning “tax-dodging companies” from winning public sector contracts