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Inside Business

The failure of government to lift wages is going to cause it an electoral problem

Ministers seem to believe that raising the floor created by the minimum wage combined with a tight labour market will fix the problem of falling living standards for it. But, as James Moore writes, a TUC analysis out today shows that it’s failing

Monday 13 December 2021 00:01 GMT
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The British economy has not boosted wages which are falling in real terms
The British economy has not boosted wages which are falling in real terms (PA)

Pay them more! So said the government in response to chronic labour shortages in critical sectors. Lorry driving. Food processing. You know the drill.

And so they did. At least, so some of the them did.

Tesco unveiled a bung to tempt drivers in the form of a four figure golden hello. Amazon sprinkled a little pre festive cheer around its Dickensian fulfilment centres. A few others decided to join their party. If you can’t beat ‘em...

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