Tory leader Kemi Badenoch faces criticism for opposing further increases in the minimum wage, with accusations of waging a war on workers. This comes shortly after Chancellor Rachel Reeves announced a pay rise for approximately 2.6 million workers in the upcoming Budget, with the National Living Wage set to rise to £12.71 per hour for employees aged 21 and above from April 2026.
The proposed increase is expected to provide a boost of around £900 per year for the lowest earners, while the National Minimum Wage for 18 to 20-year-olds will also see an 8.5% raise to £10.85 per hour. Badenoch defended her stance in an interview with the BBC, expressing concerns about the potential impact on businesses if the minimum wage is raised further.
Badenoch emphasized the importance of consulting with businesses, stating that while she had previously raised the minimum wage during her tenure as Business Secretary, many businesses struggled to cope with the increased costs and had to reduce their workforce. She stressed the need to balance setting a fair minimum wage with alleviating other financial burdens on businesses, such as high business rates, corporation taxes, and regulatory requirements.
In response, Trades Union Congress General Secretary Paul Nowak criticized the government, highlighting the impact of Tory policies on living standards and the vital role of the minimum wage in supporting low-income workers. Nowak emphasized the independent nature of the Low Pay Commission in determining the minimum wage and underscored the importance of ensuring fair wages for workers to sustain the economy.
Labour’s employment rights minister, Kate Dearden, condemned Badenoch’s stance, accusing the Tories of launching an assault on workers. Dearden criticized Badenoch’s previous comments on maternity pay and expressed concerns about potential cuts to employment rights, which could lead to detrimental practices like fire-and-rehire and reduced wages for workers. She emphasized Labour’s commitment to supporting working people through improved workers’ rights, increased pay for low earners, and efforts to reduce energy costs to benefit individuals financially.