Jeremy Corbyn sets out Labour's £10 minimum wage plan

Jeremy Corbyn - PA

Labour’s proposal to raise the minimum wage to £10 per hour in 2020 would boost the pay of 5.6m people, Jeremy Corbyn has said. 

Launching the policy in Luton, the Labour leader said employees on basic earnings would be better off by more than £2,500 while 21 to 24-year-olds on lower wage rates would be in line for a £4,500 raise under Labour's “Real Living Wage” (RLW).

The policy, which was first set out by Shadow Chancellor John McDonnell at least year’s Labour conference, would replace the existing National Living Wage (NLW) and would abolish the lower pay rate for under-25s.

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Corbyn launched the policy in Luton.

"The government’s re-branding of the minimum wage to the National Living Wage hasn’t dealt with the real problems of low pay and rising cost of living," he said.

“Labour’s Real Living Wage will immediately boost the incomes and opportunities of more than 20 per cent of the workforce, especially in sectors such as retail, care and hospitality.

“We know that where work pays, living standards rise and reliance on benefits falls. This is the right thing to do and a Labour government will be committed to rebalancing our economy so that no one and no community is left behind.”

Business leaders warned such a rise could lead to job losses. 

The UK Government's National Minimum Wage increased this month by 30p to £7.50 an hour for those over 25. It is due to increase to £8.75 by 2020.