The Confederation of British Industry (CBI) said that the UK government needs radical ideas to raise the living standards that UK families, specifically those with children, actually need.
They are calling for an extension of the 15 hours a week of free childcare for three and four-year old children and two year olds. This extension could provide a £3,430 yearly bonus for the families.
They said that the gradual increase in the employee insurance to £10,500 brings it in line with income tax personal allowance. According to CBI Director General John Cridland, the bonus of £363 yearly for low-income earners is already a huge difference in their budgets.
The CBI is also calling for the UK government ot provide statutory maternity pay to be extended from nine to twelve months to close the gap between maternity pay end and financial assistance for childcare.
Cridland said “Tackling the deficit is an absolute priority, but I don’t think it’s an either/or debate. We need to be more ambitious about the ways we tackle the deficit. Deficit reduction doesn’t have to be cut and slash.”
“The National minimum Wage is about ability to pay. The Living Wage is what people need to earn. Should companies pay the Living Wage if they are able to? Yes, I would encourage them to. Can it ever be more than an encouragement? No.”