When I rule the world my plan is this:
National living wage is set. Let’s say that’s £25k for a 35 hour week.
Businesses can pay less if they want to but must pay at least minimum wage. Let’s say that is £20k.
However, any large business that pays any of its staff (or outsourced staff such as cleaners, reception, security) less than the living wage and expects those people to use government benefits to top up is subject to strict penalties.
This could include limitations on director and board level salaries. E.g. no more than 10 times the lowest wage that they pay. E.g. If they insist that they think people can live on the £20k,l they pay, then is it not reasonable to assume the highest paid can manage on £200k? (There would be penalties on shares and dividend payments too not just income).
If they say their business cannot afford to pay the living wage, then maybe the business isn’t sustainable and the directors don’t deserve £2m salaries until it is sustainable.
Why do we allow business to privatise profit, but socialise low wages.
Im sure the devil is in the detail but would be a good experiment.