Resolution Foundation Podcasts

Setting a high bar: Celebrating 25 years of the minimum wage, and plotting its next path

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Synopsis

The introduction of the minimum wage back in April 1999 was a controversial policy choice, with businesses warning that it would lead to widespread job losses. But 25 years on, it has proved to be a great policy success that has been built on by several governments. Raising the legal wage floor has significantly reduced low pay and inequality, without any substantial employment effects. With the minimum wage on track to reach its target of two-thirds of median hourly earnings this year, virtually eliminating hourly low pay in Britain, it’s time to reflect on the successes of this approach and aims for the future. How has the UK labour market changed since the introduction of the minimum wage? Why has it been able to evolve into a far higher wage floor than originally intended? What’s next for the minimum wage – or should the priority for change now move elsewhere? And what lessons can be learnt from the way the minimum wage was introduced and the role the Low Pay Commission has played over the past quarter-ce