Hiking the minimum wage as graduate salaries flatline is creating a system where ambition is no longer rewarded, writes Steve Rigby

Who can argue with raising the living standards of the lowest paid? The minimum wage was introduced more than 25 years ago, and we have made great progress in lifting millions out of poverty. Yet I fear we are losing perspective. In our pursuit of social justice, we risk incentivising mediocrity and low aspiration while undermining Britain’s competitive advantage.

The Low Pay Commission’s (LPC) recent decisions reveal a fundamental flaw in how we approach wage policy – and one that is crippling UK businesses in key sectors of the economy. Last year, the LPC increased its primary measure for determining the low pay from 60 per cent to 66 per cent of median national pay, driving a staggering 6.8 per cent rise in the minimum wage.

At the same time, graduate salaries are flatlining in an employment........

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