Minimum Wage Reform Bill

A bill to raise the minimum wage, to differentiate the minimum wage to suit different living costs in different areas, to guarantee its future level against inflation, and to take control over its level away from politicians to economic experts.
Bill ID B063
Author(s) The Rt Hon Sir Charles Gladstone OOBC MP
Amended by Sir Dustin Crowe, Baron Strathclyde
First reading 2021 February 16
Royal assent TBC
Commencement TBC
Affected legislation

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

Section 1: Definitions

  1. Minimum wage refers to the minimum salary per hour as specified in the National Minimum Wage Act 1998.
  2. An Urban Living Wage zone is a regional zone where the minimum wage is higher than that of the rest of the country due to higher living conditions, as specified in Section 5.

Section 2: Minimum wage increase:

  1. The Minimum wage will be raised to these levels: £10 an hour for aged 25 and over, £9.50 for 21 to 24 year olds, £7 an hour for 18 to 21, £5 for under 18s and £5 for apprenticeships £10 an hour for aged 20 and over, £8 for those aged 19 and older, and £8 for apprenticeships. (Amdt. A)
  2. These increases are not to be lowered in any fashion until at least two years after the passage of this act.

Section 3: Transfer of Control to the Bank of England:

  1. The Bank of England will now have the authority to determine the overall level of the minimum wage.
  2. To affect an increase in the minimum wage, the Bank of England Monetary Policy Committee must vote to authorise it, with a simple majority in favour.
  3. To affect a decrease in the minimum wage, the Bank of England Monetary Policy must vote to authorise it with at least 7 of the nine deputies votes in favour of such a decrease.
  4. Parliament retains the right to override the decision of the Bank of England, but 2/3 of MPs must vote to override with majorities in both houses. (Amdt. B)
  5. If the Bank of England fails to reach a determination, the minimum wage will rise as stated in Section 4.

Section 4: Triple Lock on the Minimum Wage:

  1. Annually all strata of the minimum wage will rise by the same factor as whichever of these three indicators collected by the Office for National Statistics is Higher: the Consumer Price Index, Median Wage growth rate or 2.5%.
  2. This annual increase goes into effect unless the bank of England votes to halt them, which is counted as a decrease.

Section 5: Regional Adjustments

  1. The Office of National Statistics is instructed to undertake a review into which areas have significantly higher living costs and thus justify a higher minimum wage than the rest of the country, and to recommend on the level of the minimum wages in those areas, with its recommendations being implemented to create regional ‘urban living wage’ zones.
  2. The ONS is instructed to review their data and conclusions annually.
  3. The Bank of England is instructed to annually review the evidence from the ONS and adjust the rates in urban living wage zones as well as include new areas into the Urban Living Wage Zone category where living costs justify that increase.

Section 6: Title and Commencement.

  1. This Bill shall be known as the Minimum Wage Reform Act.
  2. This bill commences upon Royal Assent.
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