A REVIEW carried out by a team including a York economist has called for the Government to launch a major reform of the minimum wage.

Professor Karen Mumford, of the department of economics and related studies at the University of York, is among the panel of academics and policy experts which looked into the issue and has now produced its final report.

It says the minimum wage needs a fundamental overhaul.

The review said the Low Pay Commission should become a powerful new watchdog with the goal of lifting a million workers out of low pay, while the minimum wage should ultimately be worth 60 per cent of average hourly earnings.

Professor Mumford said: “The minimum wage has proven to be very successful in increasing pay for the very lowest earners, but there has been little improvement for the additional millions of employees trapped in persistently low-paying jobs.”