Push to raise minimum wage to £10

Sunday 28 February 2021

Reform Jersey is making a push to raise the minimum wage to £10 an hour by next year.

The party is also asking that the Social Security Minister ensure at least two representatives of poverty-focused charitable organisations sit on the Employment Forum – a non-political body that makes recommendations to government on employment and wage matters.

The proposal then goes further, requesting that the Minister examines the possibility of fixing the minimum wage to the level of the Living Wage, which is currently £10.96 - £2.64 more than the current minimum wage of £8.32.

The Living Wage is an hourly rate calculated to cover the basic essentials of living by Caritas Jersey - an organisation dedicated to helping the island's most vulnerable.

Deputy Geoff Southern – the party’s lead on matters of Social Security, after it decided to become the official ‘Opposition’ to Government - put forward the proposal, which is due to face a vote in the States Assembly on 20 April.

Pictured: Deputy Geoff Southern has brought forward the minimum wage plan, which was a commitment in Reform Jersey's manifesto.

Deputy Southern explained that the Chief Minister set out to raise living standards at the beginning of his term “through meaningful increases on the minimum wage" in the 'Common Strategic Policy' document - a paper laying out Ministers' overarching goals over their term. 

“What has he done? Nothing. The time has come for the Chief Minister to call an end to the leakage of some £100m annually to subsidise poverty wages through Income Support,” Deputy Southern commented.

In a report accompanying his proposition, he says the approach taken by the Government towards the economy has not led to any significant economic growth or improvements in productivity, but has instead resulted in “a two-tier society where some have very high earnings while others earn poverty wages.”

It adds: “As we move towards a phase of recovery from the wide-ranging impacts of covid-19, we have the opportunity to establish new standards of employment and opportunity for all. Significant sums have been allocated to the co-funded payroll schemes and other support for employment on a temporary basis and in response to a crisis. The fact is however that we as a government have been directly subsidising low-paying employment to the tune of over £70m a year in Income Support payments and reduced taxes and contributions because of our low-wage economy.”

Pictured: The proposal aims to close the gap between the island's highest and lowest paid.

Examining the potential financial impact of the move, he forecasts that the Government would gain around £0.6m more per year.

“We have the opportunity, post covid-19, to ‘build back better (and fairer)” Deputy Southern added.

“It is time for the Chief Minister to show some leadership and act to reduce the extremes of income inequality in our society."