The living wage will act in a lot of ways the same as the minimum wage does. Because it will be the lowest an employer is allowed to pay, a disproportionate amount of people will be on it. The minimum wage has lead a situation in places of work where lots of people are on 12K to 15K, a few people are on 40K or over and nobody in the middle. The Suffolk library service was like this before divestment. A living wage would carry this on.
As employers put prices up to pay for the minimum wage, they will put prices up to pay for the living wage. The minimum wage was supposed to raise living standards but the cost of living increased with it and continued to increase. The living wage is also designed to raise living standards but it would fail in the same way the minimum wage has.
The living wage would also cause rocketing inflation. Prices will go up to pay for the living wage, as prices go up the cost of living would raise, because the cost of living will raise the living wage would have to raise with it. This would be an inflationary cycle that would bankrupt the country. Now I know that national bankruptcy is what a lot of people on the left want, but it would not be good.
We are in the present situation because Labour flooded the county with immigrants to keep wages low. As Labour caused this problem, they are hardly going to have a solution to it.
It would be better to raise the personal tax allowance to £15K, scrap Employers NI and scrap the carbon tax.
We can improve the standard of living of millions of people by scrapping the carbon tax (the cost of living tax) that was implemented by Ed Milliband. This wouldn’t freeze our bills, it would cut them. We don’t want our bills frozen, we want them cut.
The living wage wouldn’t solve any problem but it would create a few more problems.