The national minimum wage for British workers is set to be lower for workers in real terms than it was nearly a decade ago, according to a new report by The Resolution Foundation .
The Report said that October's planned 11p an hour rise to £6.19 was the third successive below inflation increase.
| Professor Alan Manning of the London School of Economics |
Resolution Foundation senior analyst James Plunkett said: "After 13 years of detailed studies into its impact, the benefits of the national minimum wage are now beyond doubt.
"It has boosted wages for some of the poorest paid people in the country and helped to make sure work pays, without causing job losses.
"The question now is what role it can play in the future to raise living standards even further."
Professor Manning added: "The minimum wage is one of the most popular policies of modern times but in some sense it's been a victim of its own success.
"Given the scale of the challenge now facing living standards, it might be time to think about more radical options for reform.
"For example, we could consider introducing a higher minimum wage for workers aged over 30 who are more likely to have families to support, or for London and the South East.
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James Plunkett
Secretary to the Commission on Living Standards
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A spokesman for the Department for Business, Innovation and Skills said: "It is important that we have a national minimum wage that provides the necessary protection for the lowest paid workers, while at the same time not pricing people out of the labour market.
"The rates are recommended to Government each year by the independent Low Pay Commission (LPC) who base their analysis on extensive evidence and a thorough consultation process."
:: The LPC lists the 2004 minimum adult hourly rate as £4.85
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