Responding to today’s minimum wage announcement, Daniel Herring, Centre for Policy Studies Head of Fiscal and Economic Policy, said:
‘Businesses and workers are still grappling with the impact of the previous Budget, in which the Chancellor increased the cost of hiring a minimum wage worker by £2,367 per year as she increased employers’ National Insurance and the minimum wage.
‘These changes have had a big impact on the labour market, with the number of job vacancies at the lowest level since 2021 and unemployment rate creeping up to 5%. And it is those at the bottom, and those entering the job market, who suffer the most.
‘Further increases to the National Living and National Minimum Wages, while well-intentioned, will ultimately harm people who want to work but cannot find employers willing to bear the cost of hiring those with the least experience or skills.’
ENDS
NOTES TO EDITORS
- Daniel Herring is Head of Fiscal and Economic Policy at the Centre for Policy Studies
- ‘Punching Down’, a report analysing the effects of the last Budget on employment costs, is available to download here
- For further information and media requests, please contact Melisa Tourt on 07399 251110 and [email protected]
- The Centre for Policy Studies is one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, housing, immigration, and energy abundance, its goal is to develop policies that widen enterprise, ownership and opportunity.
Date Added: Tuesday 25th November 2025
