PM On Oil Prices: Workers Should Reap Rewards

Written By Unknown on Sabtu, 17 Januari 2015 | 18.56

Companies should pass on the benefits of falling oil prices to their staff by increasing their wages, David Cameron has said.

The Prime Minister also urged firms to pay their workers the living wage, currently £7.85 an hour, which is higher than the minimum wage of £6.50.

Global oil prices have dropped sharply over the last seven months amid falling demand in economically struggling countries and increased production in the US.

Mr Cameron was pressed by journalists on the issue at the end of a two-day visit in Washington after meeting President Barack Obama.

The PM said: "Obviously I want to see companies' success passed through in terms of wage increases.

"It has to be done in a way that's affordable, and in a way that companies can continue to grow, we need to see productivity increase.

"Companies that can afford to pay the living wage should. It's good and helps to reduce the welfare bill."

Asked whether firms should share the oil dividend with their workers, he said: "Falling oil prices is going to benefit a lot of businesses and a lot of countries and we want to see those benefits passed through in all the ways they can be."


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