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16/01/2009
Minimum wage 'loophole' branded a "disgrace" |
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The Child Poverty Action Group (CPAG) has slammed a new pilot that could see people work for far less than the minimum wage.
Currently the national minimum wage is £5.73 an hour for workers aged 22 and over but the 'work for your benefit' clause - that will allow some unemployed people to be forced into work - will mean an effective minimum wage of just £1.73 an hour for up to six months, CPAG says.
The group has labelled the scheme as a "disgrace", claiming that it provides a loophole in the system.
"In the current economic climate we urgently need fiscal stimulus to support poor families. Harsh sanctions are surely more appropriate for the architects of the recession, not its victims," a spokesperson said.
Forcing people to work without a proper wage flies in the face of the government's aims of tackling child poverty and improving social mobility, the organisation added.
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