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AM says more action still needed on minimum wage

October 2, 2007 12:00 AM

The Welsh Liberal Democrat Spokesperson for Communities, Housing and Social Justice, Peter Black, has welcomed the new minimum wage rate that comes into force this week, but has warned the government that more still needs to be done in order to tackle poverty.

The minimum wage has risen to £5.52 for over 21's and £4.60 for over 18 to 21 year olds. Annual leave entitlement has also risen from a minimum of 20 to 24 days, with a further increase planned in 2009.

"While I am glad to see a significant increase in the minimum wage, this alone is not going to solve the problems faced by many in this country," said Mr. Black. "We still have the appalling situation where the lowest earners pay a higher proportion of their income in tax than the highest earners. Action needs to be taken to reduce the tax burden on the poorest in our communities, particularly by replacing the unfair and discriminatory Council Tax with a Local Income Tax."

"We also need to remove the age brackets on the minimum wage. Why is the work of a twenty one year old less valuable than that of a twenty two year old? Why is it the case that students struggling to cope with university debt or young single mothers do not qualify for the same minimum wage because of their age?"

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