wages council

Council responsible for setting a legally enforceable minimum wage in an industry in the UK. Industries covered by wages councils include retailing and hairdressing. They were introduced in 1909 to prevent employers exploiting workers in traditionally low-paid industries where trade unions were weak because workers found it difficult to organize collectively.

Wages councils have always been controversial because some employers would like to pay workers less than the set minimum. They argue that minimum wages cause unemployment in the industry. However, set wages have on the whole been little more than the free market wage. Despite this, the government announced in 1992 that it planned to abolish wages councils.

In 1998 the New Labour government introduced a national minimum wage.