Lower earners 'need government support'

19/11/2009

The government should make sure that they are coming to the aid of people on low incomes by tackling inequality in the tax system.

That is according to the Institute of Employment Rights (IER), which said that Britain's taxation rules are not fair and that people in low-paid jobs are suffering the most in the recession.

Carolyn Jones, director of the organisation, which campaigns for change in labour laws, said that the authorities are not doing enough to support workers who do not earn enough.

"We do have the national minimum wage but it has been set at such a low rate [that] we argue it institutionalises low pay [rather] than solve the problem," she explained.

Ms Jones added that the IER would like to see an increase in the minimum wage.

"It should take it up from £5.80 or whatever it is now, to around about £7. When you compare that to the pay that some of these fat cats get, then it is still very low," she said.

The comments come after a statement from the Trades Union Congress called for the government to bring public finances back on track without increasing taxation.

Tags; Income Worries and Debt,

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