A Midland employment expert has welcomed the Labour Party’s plans to raise the minimum wage and claims it could have huge economic benefits.

Labour leader Ed Milliband announced over the weekend proposals to bring in a so-called ‘living wage’ in 2016 should his party win the next General Election.

The measure would lift the lowest legal income from £6.31 an hour, for people over 21 living outside London, to £7.45 an hour.

Kim Hoque, Professor of Human Resource Management at Warwick Business School, said the scheme would represent “a substantial win-win”.

“Not only would it provide valuable respite for millions of families struggling to make ends meet, but it could also provide a much-needed boost to a sustainable recovery,” he said.

“Arguments were made when the minimum wage was first introduced, yet there has been no evidence it has had negative employment effects.”