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No Pay Rise Expected Until 2015 For Millions

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http://news.sky.com/skynews/Home/UK-News/Economic-Growth-Unlikely-To-Affect-Pay-of-Ordinary-Workers-Until-2015-Says-Thinktank/Article/201105416000602?lpos=UK_News_First_Buisness_Article_Teaser_Region_4&lid=ARTICLE_16000602_Economic_Growth_Unlikely_To_Affect_Pay_of_Ordinary_Workers_Until_2015_Says_Thinktank

The economic recovery is unlikely to benefit ordinary workers, who could see their pay continue to flatline until 2015, a report has suggested.

According to the thinktank the Resolution Foundation, the living standards of the UK's 11 million workers on low and middle incomes were already faltering before the recession, and they may not improve even when the economy begins to grow steadily again.

It also hints that the "squeezed middle" are losing out, as the highest earners take the proceeds of limited growth.

James Plunkett, author of the report, said: "We all know that the recession has hit living standards hard.

But something deeper has changed in our economy - even during the so-called boom years, ordinary workers weren't seeing their living standards rise.

All these reports tell us that the economy is getting better. But the actual reality is that inflation is very high, it's affecting everything we buy and wages aren't going up and it's not good news.

"The big question now is what will happen when growth resumes - will ordinary workers reap any of the benefits? This report suggests that is far from certain."

The group, which based its analysis on government projections, said average pay was set to be no higher in 2015 than it was in 2001.

It warned that the combined pressures of stagnating wages and high levels of personal debt would continue to have a huge impact on workers' living standards.

Steve McNamara, a London taxi driver, told Sky News he wasn't surprised by the claims that millions of families will continue to struggle.

He said: "All these reports tell us that the economy is getting better. But the actual reality is that inflation is very high, it's affecting everything we buy and wages aren't going up and it's not good news"

The Resolution Foundation has warned that the politicians must do more to appreciate the impact the financial troubles have had on millions of ordinary families.

It also stresses that the situation is likely to be made worse by government cuts to tax credits

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http://news.sky.com/skynews/Home/UK-News/Economic-Growth-Unlikely-To-Affect-Pay-of-Ordinary-Workers-Until-2015-Says-Thinktank/Article/201105416000602?lpos=UK_News_First_Buisness_Article_Teaser_Region_4&lid=ARTICLE_16000602_Economic_Growth_Unlikely_To_Affect_Pay_of_Ordinary_Workers_Until_2015_Says_Thinktank

The economic recovery is unlikely to benefit ordinary workers, who could see their pay continue to flatline until 2015, a report has suggested.

According to the thinktank the Resolution Foundation, the living standards of the UK's 11 million workers on low and middle incomes were already faltering before the recession, and they may not improve even when the economy begins to grow steadily again.

It also hints that the "squeezed middle" are losing out, as the highest earners take the proceeds of limited growth.

James Plunkett, author of the report, said: "We all know that the recession has hit living standards hard.

But something deeper has changed in our economy - even during the so-called boom years, ordinary workers weren't seeing their living standards rise.

All these reports tell us that the economy is getting better. But the actual reality is that inflation is very high, it's affecting everything we buy and wages aren't going up and it's not good news.

"The big question now is what will happen when growth resumes - will ordinary workers reap any of the benefits? This report suggests that is far from certain."

The group, which based its analysis on government projections, said average pay was set to be no higher in 2015 than it was in 2001.

It warned that the combined pressures of stagnating wages and high levels of personal debt would continue to have a huge impact on workers' living standards.

Steve McNamara, a London taxi driver, told Sky News he wasn't surprised by the claims that millions of families will continue to struggle.

He said: "All these reports tell us that the economy is getting better. But the actual reality is that inflation is very high, it's affecting everything we buy and wages aren't going up and it's not good news"

The Resolution Foundation has warned that the politicians must do more to appreciate the impact the financial troubles have had on millions of ordinary families.

It also stresses that the situation is likely to be made worse by government cuts to tax credits

Dont those on the NMW get a yearly rise?

Rises in benefits seem to be much better though, as a percentage.

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Dont those on the NMW get a yearly rise?

Rises in benefits seem to be much better though, as a percentage.

Yes they do. BUT they are at/below inflation and will be until around 2015 therefore there is no real increase.

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Erm this has been normality for the past ten years!

I always remember the difficult conversations with bosses.... no pay rises, times are hard (when we were doing the billing and billed millions). Or they'd threaten to outsource if we asked for more. Which they did anyway :angry:

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Dont those on the NMW get a yearly rise?

Rises in benefits seem to be much better though, as a percentage.

Yes those on the NMW not a living wage get a yearly rise. They will either be the second income in a household or living with parent's in most cases.

Those on benefits don't need to worrie they get looked after .

Those on average wages with children have had good Tax credits over the years so were not that worried about the wages not keeping up. This group will be hit as Tax credits are reduced.

Those on average wages without children have been hit in a big way over the years i.e. wages not keeping up and more and more tax's both direct and stealth tax's . They will be hit again as infaltion rises but their wages do not . These are the squeezed middle.

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Yes they do. BUT they are at/below inflation and will be until around 2015 therefore there is no real increase.

£5.93 - the main rate for workers aged 21 and over

£4.92 - the 18-20 rate

£3.64 - the 16-17 rate for workers above school leaving age but under 18

£2.50 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

Rates from 1 October 2011

The NMW rates are reviewed each year by the Low Pay Commission and from 1 October 2011:

the main rate for workers aged 21 and over will increase to £6.08

the 18-20 rate will increase to £4.98

the 16-17 rate for workers above school leaving age but under 18 will increase to £3.68

the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship will increase to £2.60

Mega Buck$ = £6.08 x 40 hours = £243.2 - TAX = £913.49/month

I can see why people choose benefits.

Housing benefit £65 / week +JSA of £65.45/week = £563.33/months claiming

Means that you get an £2.19 per hour extra for working a minimum wage job instead of claiming. (based on single no dep 25+)

£2.19 per hour to care / clean / stack shelf's / serve burgers anyone?

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£5.93 - the main rate for workers aged 21 and over

£4.92 - the 18-20 rate

£3.64 - the 16-17 rate for workers above school leaving age but under 18

£2.50 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

Have a look at some jobs sites, almost EVERYTHING has been turned into an apprentice role.

Apprentice accountant

Apprentice cleaner

Apprentice phone operator

Apprentice office clerk

Apprentice IT help desk specialist

Apprentice receptionist

etc etc etc

Apprenticeships in theory are a good idea but should be overhauled to prevent this kind of misuse.

£2.19 per hour to care / clean / stack shelf's / serve burgers anyone?

If it hasn't been automated already.

Edited by ken_ichikawa

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Really?

commodities_chart-634x534.png

Well they may have a point. I cannot remember the last time I bought crude oil and lean hogs. Definitely not since 2004 anyway.

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£5.93 - the main rate for workers aged 21 and over

£4.92 - the 18-20 rate

£3.64 - the 16-17 rate for workers above school leaving age but under 18

£2.50 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

Rates from 1 October 2011

The NMW rates are reviewed each year by the Low Pay Commission and from 1 October 2011:

the main rate for workers aged 21 and over will increase to £6.08

the 18-20 rate will increase to £4.98

the 16-17 rate for workers above school leaving age but under 18 will increase to £3.68

the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship will increase to £2.60

Mega Buck$ = £6.08 x 40 hours = £243.2 - TAX = £913.49/month

I can see why people choose benefits.

Housing benefit £65 / week +JSA of £65.45/week = £563.33/months claiming

Means that you get an £2.19 per hour extra for working a minimum wage job instead of claiming. (based on single no dep 25+)

£2.19 per hour to care / clean / stack shelf's / serve burgers anyone?

Don't people on benefits also get things like council tax paid for and dentist/opticians? Plus when you take in account the person working will have commute (perhaps another ten hours onto the working week), transport costs, other work expenses, less time for things like home cooking = more money spent on convenience food = worse health etc etc

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£5.93 - the main rate for workers aged 21 and over

£4.92 - the 18-20 rate

£3.64 - the 16-17 rate for workers above school leaving age but under 18

£2.50 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

£2.19 per hour to care / clean / stack shelf's / serve burgers anyone?

Could be worse, you could be a Social Worker up North on £28k a year..

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Or looking at it from a glass half full perspective - yay, at last a pay rise in 2015! And they'll probably have robots and flying cars and stuff to spend it on by then too B) Unless it's a pay rise which is less than inflation of course, which at over 5% a year would mean any pay rise in 2015 under 25% is actually a pay cut :(

Edit: spelling

Edited by jammo

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The economic recovery is unlikely to benefit ordinary workers, who could see their pay continue to flatline until 2015, a report has suggested.

According to the thinktank the Resolution Foundation, the living standards of the UK's 11 million workers on low and middle incomes were already faltering before the recession, and they may not improve even when the economy begins to grow steadily again.

I admire their optimism.

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Erm this has been normality for the past ten years!

I always remember the difficult conversations with bosses.... no pay rises, times are hard (when we were doing the billing and billed millions). Or they'd threaten to outsource if we asked for more. Which they did anyway :angry:

Why should anyone get a payrise just because a calender year has gone round? Have you improved your skills, your effectiveness, your productivity? If you have then of course you can ask for one (not sure you deserve one) if you don't get it then it's time to look at your options.

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Why should anyone get a payrise just because a calender year has gone round? Have you improved your skills, your effectiveness, your productivity? If you have then of course you can ask for one (not sure you deserve one) if you don't get it then it's time to look at your options.

A cost of living increase can be the norm at some places, with a pay rise on top if you have done the things you list.

This can be RPI but I doubt anybody has got RPI this year.

Ken has worked for some rubbish companies IMO.

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A cost of living increase can be the norm at some places, with a pay rise on top if you have done the things you list.

This can be RPI but I doubt anybody has got RPI this year.

Ken has worked for some rubbish companies IMO.

I struggle with the RPI thing purely because we go for three year contracts and the selling point is fixed cost. So wage rises impact our profitability, however everyone got a pay rise last year at different times and different rates and many at 10% or more.

The trade off in my company anyway is that we are a pretty stable employer having only made a handful of redundancies in 20 years and in all honesty they were non performers who we had slip through the probation net.

Agree about Ken's work experience which is why I have no problems with min wage and industrial tribunals in the main they are some rubbish employers out there.

Even yesterday in the Shoesmith case the judge virtually said what a bunch of muppets if they had followed procedure they could of got rid of her for a fraction of the cost. The council must have a massive HR Dept and they couldn't follow what in all honesty are basic procedures. Sort of confirms my view of council employees in the central functions.

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I've always found that the easiest way to a pay rise is to change jobs. If that is an option for people, they should look at doing that rather than taking inflation on the chin. Companies always say that their staff are their most valuable resource so they ought to treat them that way - when they don't, leave.

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Don't people on benefits also get things like council tax paid for and dentist/opticians? Plus when you take in account the person working will have commute (perhaps another ten hours onto the working week), transport costs, other work expenses, less time for things like home cooking = more money spent on convenience food = worse health etc etc

They do, but the housing benefit goes to the landlord(eventually) not the benefit claimant who has to meet other costs out of the £65 pw such as electricity, gas etc.

I wonder how many on here could live on that?

For the NMW worker living at parents home its a different matter, or two NMW's living together, for them I assume getting even NMW job makes sense.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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