Dominic Raab grilled by Nugent over 'worries' about inflation
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Dominic Raab has been put on the spot by BBC’s Sally Nugent, who exposed a key flaw in the Conservative Party’s higher wages plan. The Deputy Prime Minister squirmed as he was asked whether inflation would go hand in hand with higher wages. It came as Boris Johnson is expected to announce a rise in national living wage for people over 23 within weeks.
The BBC Breakfast presenter asked Dominic Raab: “Is nobody worried that higher wages and wage growth go hand in hand with inflation?
Dominic Raab replied: “Well we do look very carefully at that and of course inflation is rising and there are all sorts of reasons for that.
“But it is also expected after this year to come back down again and the Bank of England targets it very carefully.
“With all these economic judgments, it’s a balance.”
He went on: “But we’ve seen a remarkable bounce back in the economy.
“We’ve also got to make sure that we look after the workers, and make sure that they’ve got the wages that they need.
“And part of that is adapting and adjusting to this new economic paradigm.”
Mr Raab continued: “And part of it is the Government support that’s being put in place. And so we want to talk to employees.
“They’ve navigated a very difficult set of circumstances,
“But we ultimately are making sure as I said that, particularly those on low and middle accounts, have the wages that they need to look after their families and to be able to have a more comfortable life.”
A report has claimed that the Prime Minister is set to announce a staggering 5.7 percent increase to the national living wage within weeks.
The rise will target UK’s lowest-paid earners over the age of 23 to around £9.42 per hour, double the previous increase of 2.2 percent in April 2021 which upped the national living wage to its current rate of £8.91 per hour.
The increase would mean the annual earning of someone on the national living wage would increase by 5/7 percent.
Recommendations for the minimum wage are made by the Low Pay Commission
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