The government is being accused of breaking its promises over improving wage rates in Jersey.

It's after a ministerial report concluded no laws should be changed to mandate the living wage, and said the target for raising the minimum wage will be missed.

A review by the Social Security Minister has concluded the way the minimum wage is set shouldn't change; the living wage should remain optional for employers; and the target of a minimum wage that is two thirds the median average wage (currently around £31k per year) is unlikely to be achieved by the end of 2024 due to 'economic conditions'.

Assistant Minister Deputy Malcolm Ferey told Channel 103:

"What we didn't anticipate when that target was set is the economic conditions that we currently find ourselves in.

What the report is saying is that it is unlikely that two-thirds target will be met by the end of 2024 because things have changed. Costs are increasing for business, energy costs, food costs, costs of shipping goods to the island.

It is important that we look at it in that context, and make sure that the correct way of setting the minimum wage going forward is maintained through the Employment Forum."

From January, the minimum wage will be £11.64 per hour and the living wage will be £13.41.

Caritas, which sets the living wage, has blasted the review, saying minimum wage is a poverty wage.

Very disappointing a few days after the 2024 #JerseyLivingWage was announced. Looks like @GovJersey had now decommited from it's promise to raise minimum wage to parity with #LivingWage. To be clear, minimum wage is a poverty wage and poverty is increasing in our island! https://t.co/813BrQaLog

— Caritas Jersey CEO (@CaritasJsyCeo) December 19, 2023

Reform Jersey says it is a 'shameful disregard' of previous States Assembly decisions and that the party will be looking at what counter proposals it can bring to get the move to a Living Wage 'back on track'.

"The report offers no economic assessment justifying their abandonment of this target, nor does it refer at all to the plight of the lowest paid workers in Jersey who are suffering from the cost of-living crisis.

It seems that poverty pay will persist under the Better Way Conservative Coalition.

However, we in Reform Jersey remain committed to raising the Minimum Wage to a real Living Wage, as we have been since we were founded."

Restaurateur and businessman Dominic Jones has described the government's position as 'kicking the can down the road'.

"The report’s approach is yet again to kick the can down the road. No demonstrable commitment to a minimum wage that offers the ability to live with dignity and a decent standard of living in our (for some) wealthy island."