George Osborne may be a lot of things, but he is certainly not stupid.
He knows exactly what he is doing regarding the living wage. It may be a massive ‘con job’ that most people see through, but it seems the working class Tories find it hard to get their heads around.
It will leave people at least £8,700 worse off by 2020 than they would have been under the ‘real’ Living Wage.
He rambles on about the Government’s ‘High Wage, Low Welfare’ economic policy, and he uses this to try to justify the cuts to tax credits that would slash £1,300 from three million household budgets.
The new minimum wage is going to be £7.20 an hour from April, yet the Living Wage Foundation considers it should be £8.25. If Mr Osborne really wants a high wage low welfare country, he should raise the minimum wage to £10 an hour at the same time as his slashing of tax credits, and that would make businesses pay a living wage instead of it being made up by tax credits. Then everyone would pay taxes and contribute to society.
As Yanis Varoufakis, the Greek economist, said when asked on Question Time about the Conservatives being an austerity party, ‘the Conservative Party have used fiscal policy as a narrative to conduct a class war on its citizens’.