Matt Hancock, the business and skills minister, addressed the Resolution Foundation’s low pay debate this morning, an indication of how seriously the Tories are taking the rising cost of living. He delivered a resounding defence of the minimum wage. He said that the evidence was overwhelming: the minimum wage did not harm employment levels: and declared that the Conservatives should ‘strengthen’ the minimum wage. He said that the minimum wage should be enforced, and hinted that the Low Pay Commission might be reinforced. He said that working more hours was not necessarily the right answer, contrary to those who hold that Britain needs to harder and longer.
Beyond that, Hancock proposed a three-pronged scheme: welfare reform to encourage work, lower direct taxes and raised skill levels. He believes that the Conservatives are best placed to deliver this, vowing that the ‘centre-right was prepared to take on vested interests in delivering better skills and education.’
Hancock argued that welfare reform encouraged people into work, adding also that higher pay would also mean less welfare support from the state.

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