A Conservative-led proposal to freeze the national minimum wage for five years has been put forward in a report from the Prosperity Institute thinktank, carrying an endorsement from Andrew Sharpe, a shadow business minister. The report argues that fixing the rate could help address what it describes as a low level of employment among young people.
The thinktank's analysis estimates that keeping the minimum wage at its current level for half a decade would result in a loss to low-paid workers of nearly £9,000 each over the five-year period. In his endorsement, Sharpe said it was "time to take action to address the low rate of young people in work," presenting the freeze as a policy tool to improve youth labour market outcomes.
Labour has strongly criticised the proposal, describing it as "tin-eared" towards the needs of low-paid households. The party argued the measure would harm workers already facing financial pressure, highlighting a sharp division between the parties over how to balance support for young jobseekers with the incomes of those on the lowest pay.
The report and its political backing are expected to intensify debate over minimum wage policy, with advocates on different sides emphasizing competing priorities: boosting employment prospects for young people versus protecting the earnings of current low-paid workers. The proposal will now feed into wider discussions about labour market policy and economic strategy ahead of any government consideration.