Boris Johnson's Living Wage increase pledge blasted for 'shortchanging workers'

Boris Johnson’s boast of increasing the minimum wage later this year falls far short of what workers need, opponents have claimed.

The Prime Minister described the rise in the National Living Wage from £8.21 per hour to a minimum of £8.72 per hour in April as the “biggest ever” cash boost for low-paid workers.

But critics rounded on the increase, which is below the £9.30 rate called for by the Living Wage Foundation, which claims the higher level is required to meet the rising cost of living.

The Scottish Government’s fair work minister Jamie Hepburn said: “The increases announced today, following a decade of UK Government austerity, do not go far enough.”

The SNP MSP added: “The Scottish Government supports the payment of the real living wage of £9.30 per hour.

“Unlike the UK National Living Wage, this is a minimum rate which applies to all workers over the age of 18.

“While pay legislation remains reserved to the UK Government, we encourage every organisation to ensure all staff receive a fair day’s pay for a fair day’s work.”

Scottish Government’s fair work minister Jamie Hepburn (Getty Images)

Labour MP Margaret Greenwood, the Shadow Work and Pensions Secretary, said the increase comes against a ­backdrop of an economy that has left millions trapped in low-paid, insecure work over the last decade.

She added: “Labour is calling for at least £10 per hour for all workers aged 16 and over as part of a Real Living Wage that will tackle in-work poverty and the exploitation of young workers.”

TUC general secretary Frances O’Grady called for a £10 minimum wage “now, not in four years’ time”.

She added: “Workers are still not getting a fair share of the wealth they create, and in-work poverty is soaring as millions of families struggle to make ends meet.”

Some business groups tried to claim the rise in the National Living Wage is too generous.

Craig Beaumont, a director of the Federation of Small Businesses, said: “Wage increases aren’t much good to workers if prices rise, jobs are lost and there’s no impact on productivity because employers are forced to cut back on investing in tech, training and equipment.”