The problem with a minimum wage is that it doesn't take into account the minimum cost of a reasonable life. Such things as housing, getting to work, washing...
The problem for this country is that successive governments have massively increased the costs -
Housing, the selling off and not replacing council houses coupled with unlimited publicly financed rents has pushed rental up, rental yields up and therefore the price of houses up by an enormous amount. Add the blunder in the last budget with more housing lending and the prices are not falling to match the fall in wages.
Energy - for getting to work, washing, keeping house warm etc. has been a complete disaster ever since 'privatization' with more or less unrestricted hikes in taxes and prices. My latest gas and electric bill suggest a cost of £200 a month (on a summer bill!) for a tiny 3 bed semi with top notch insulation and double glazing and heating that has been off the entire time!
I can not, can not under any circumstance, compete with a guy in India who pays a few pence for a house, nothing for heating etc. if I have bills like this and the only competition is price.
Government needs to become radically cheaper. It can do this by cutting staff hugely - so a single flat benefit for all, a single flat tax on all that is earned, nothing more - no bbc licence fee, no road fund licence, no council tax, no vat, no any of the others.