The idea of a so called 'Living Wage' has cropped up again. A think tank have said that paying staff at least £7.45 per hour outside London, and £8.55 within the capital, would boost national coffers by £6.5bn a year. They believe the government would collect more income tax and pay out less in benefits and tax credits.
Matthew Pennycook, of the Resolution Foundation, said: "There are significant overall public savings to be made from paying a living wage, on top of the beneficial effects it would have on reducing working poverty."
"Public-sector employers are well-placed to expand the living wage and to set an example which the private sector can follow."
The idea of a living wage is separate from that of the legally-enforced minimum wage.
Source: BBC Business News
