BBC News - Five million paid less than living wage, says KPMG THIS is the main problem with the UK economy right now, and not one that is easily solved. Increasing the minimum wage is definitely not an option. That will only put people out of business and make the UK even less competitive. So instead of giving people more money, the only other option is to take less money off them so they have more in their pockets. I'm looking at Energy firms, public transport, and rental prices (buy to let investors). The prices for those 3 essentials are a lot higher than in most (all?) 1st world countries but are not near as good in comparison. The added benefit would be that less money is spent on welfare to support people who actually work for their money, lower rental prices will also decrease the housing benefit bill which is by far the most costly of welfare expenses. There's more to making work pay than cutting benefits.