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Minimum Wage Rises To £5.05 Per Hour

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With the National Minimum Wage rising to £5.05 per hour it got me thinking.

Just six years ago the NMW was set at £3.60 per hour and and now it is to rise to £5.05 which is an increase of 40%. Therefore those employees who are on minimum wage have seen there income increase by 40% within 6 years, I wish my wages rose inline with that!!!!!

Is this the way the government is trying to keep the economy going by forcing companies to pay employees at the bottom more and therefore give more diposable income to people in order for them to spend it and keep the economy going a little longer???

Any thoughts??

Favre

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Therefore those employees who are on minimum wage have seen there income increase by 40% within 6 years

Only if their hours haven't been reduced and their jobs haven't been outsourced. When the minimum wage was first introduced I was amused to see some minimum wage workers whining that they were now expected to do the same amount of work in less hours, so their take-home pay was the same.

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With the National Minimum Wage rising to £5.05 per hour it got me thinking.

Just six years ago the NMW was set at £3.60 per hour and and now it is to rise to £5.05 which is an increase of 40%. Therefore those employees who are on minimum wage have seen there income increase by 40% within 6 years, I wish my wages rose inline with that!!!!!

Is this the way the government is trying to keep the economy going by forcing companies to pay employees at the bottom more and therefore give more diposable income to people in order for them to spend it and keep the economy going a little longer???

Any thoughts??

Favre

You, too, could have had a 40% increase over the last six years if you were prepared to start working for an absolute pittance. If you object to people having greater disposable incomes, then I assume you'll lead by example and ask your employer for a wage cut. Please keep us updated on how it feels. Will you have to sell your property, contributing to the inevitable price drop that this board is set up to discus? I hope so.

p

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Would this not hinder the economy rather than help it? Wouldn't the overheads not increase of businesses who have the majority of their staff on the minimum wage. Most of whom I would think would be in the retail sector, which as we all know is in dire straits at the moment and pleading with the BOE for a cut almost daily.

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yes they might have given them an additional amount - but cleverly they take back a larger amount in poll tax increases fully applicable to minimum wage earners.

no change here. its magic. did you see how they did that ?

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If you object to people having greater disposable incomes, then I assume you'll lead by example and ask your employer for a wage cut.

The odd thing is that people like you whine that low-paid workers should be paid more than they're worth, then whine again when companies sack them and hire illegal immigrants who'll work for less, or ship the jobs abroad.

All the minimum wage does is push people at the bottom of the ladder out of work or forces them to work harder to compensate.

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I remember when the mw was introduced - Digby Jones popped up to claim how it would cost a million jobs, flexible workforce, competition from China blah blah. He popped up 3 days later to defend 14% increases for company directors. <_<

The rest of us exist only to keep him and his chums in a comfortable existence, apparently.

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I remember when the mw was introduced - Digby Jones popped up to claim how it would cost a million jobs, flexible workforce, competition from China blah blah. He popped up 3 days later to defend 14% increases for company directors. <_<

The rest of us exist only to keep him and his chums in a comfortable existence, apparently.

It did cost lots of jobs, luckily the saintly government stepped in and will try to employ anyone and everyone. If they can't they will find a benefit to put them on, so as they don't clutter up those darn unemployment figures.

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All the minimum wage does is push people at the bottom of the ladder out of work or forces them to work harder to compensate.

The evidence doesn't match your assertions.

p

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How do you live on 5.05 per hour in much of the UK, more's the point.

Particularly if you're single, childless and do not get any social housing.

What do right wingers want? People on £3 per hour? £2? Bread and water? Is slavery a 'job'?

Go to an HMO where the low-paid are forced to live. It's Dickensian.

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National minimum wage is set to rise to £5.60per hour by next year under present government guidelines. When the targets were being set the Union heads were demanding at least £6 per hour by this year, but luckily this was not realised. The labour government is targeting National Minimum Wage to be over £6 per hour by 2007 however.

Personally I have a problem with National Minimum Wage and believe it should be scrapped all together or at least seriously reviewed.

1) Since it's introduction millions of jobs have left the country, this is currently disguised by the fact the government re-employed most of them or put them on New deal to erase them from the unemployment figures.

2) I believe that if I set a price for something and someone agrees to pay it, I don't need some office bureaucrat telling me I'm not allowed to sell my time at the price I choose e.g. I agree to work for just £30 a day for a company who will train me in a field that I really want to enter but have no skills in. Presently I and they can't agree to this so I have no way of entering that field!

3) How come a cleaner working at Tesco has the right to National Minimum Wage, yet a man or woman risking their lives fighting for Tony Blair in Iraq does not?

4) How come a 25 year old can change careers and be exempt from NMW for up to 1 year, yet a 27 year old can't? Are all people over the age of 26 expected to like or lump their careers until they retire?

5) Raising NMW doesn't increase the standards of living for the breadline workers. Their employers either cut their hours, outsource the job or increase the prices of goods and services so those goods and services still costs x% of your take home pay. The only people who get realistically richer are the government who's tax and NI revenues increase dramatically.

People seem to forget that before NMW wage if a job was advertised at less money than you were willing to "sell your time" for, you didn't apply for it and looked for something else.

As far as I'm concerned if Betty next door wants to work for £3 an hour, who am I to stop her? It's her choice.

Years ago retailers were governed by the manufacturers as to the minimum price they could sell products onto the public. If people didn't want to buy bread for £1.60 a loaf it was tough luck for retailers as they weren't allowed to sell it at a price the people would pay. In 1964 the Resale Prices Act was passed, which considered that all resale price agreements to be against public interest unless otherwise proved in court. Isn't the government now enforcing a resale price agreement on the UK people's time? Even if we want to, we can't sell our time for any less than £5.05 per hour. Is it against public interest? Try asking the thousands of unemployed workers who would gladly work for £4.50 per hour in a job they loved, but are currently on the dole getting the equivalent of £1.47 per hour.

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How do you live on 5.05 per hour in much of the UK, more's the point.

Particularly if you're single, childless and do not get any social housing.

What do right wingers want? People on £3 per hour? £2? Bread and water? Is slavery a 'job'?

Go to an HMO where the low-paid are forced to live. It's Dickensian.

yes, £5.05 an hour works out at £9978 a year for a 38 hour week............

How can anyone live on this anywhere in the UK?..........

We're constantly told how the average income is £25000 .......

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Minimum wage and tax credits. So is it a real minimum wage?

The minimum wage was never meant to be a living wage but was desgined to work in conjunction with tax credits, that is why it was set lower than a living wage.

If tax credits had been paid to the in work poor (and this was a major problem before MW and TC) without a MW then employers would have just lowered wages knowing that the government would prop wages up with TC. The MW stopped this happening.

MW was not set higher because the aim was to target the in work poor and a lower MW with TC's does this.

Let's say the MW had been set at £10 per hour and no TC's.

If you have a couple and A earns £70K per year and B returns to work partime (on £10 per hour) then this high earner couple are alot better off.

Another couple ...A earns £15K a year and B returns to work partime (on £10 per hour) then there has been no redistribution of income.

With a lower MW and TC the first couple are a little better off but the second couple also claim TC and are a lot better off.

It's Gordon's attempt to redistribute income to the in work poor....making work pay.

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Just slash taxes for the poor and stop immigration. That will improve the lot of the poor no end, with no patronising government involvement stopping people getting even better jobs.

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Just slash taxes for the poor and stop immigration. That will improve the lot of the poor no end, with no patronising government involvement stopping people getting even better jobs.

Ahh but there will have to be a limit at which people start paying tax and this will just create another obstacle to self improvement as people will be reluctant to take work that pushes them over the tax threshold. Because TC's are tapered they allow for movement up and down the economic ladder more easily.

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Ahh but there will have to be a limit at which people start paying tax and this will just create another obstacle to self improvement as people will be reluctant to take work that pushes them over the tax threshold. Because TC's are tapered they allow for movement up and down the economic ladder more easily.

Impressive aren't they?The first means tested repayable benefit.

A few more of those and we're sorted.

Job seekers you pay back. HB you pay back. Retirement cash you pay back from your assets when you snuff if.

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The odd thing is that people like you whine that low-paid workers should be paid more than they're worth, then whine again when companies sack them and hire illegal immigrants who'll work for less, or ship the jobs abroad.

If only the council tax had risen 6.66r percent per annum :lol:

When the supermarkets strike deals with producers they know full well that the product cannot be produced that cheaply with legal labour, like their competitors they turn a blind eye and the stock market rewards them. The black economy is bigger than ever, is that anything to do with the minimum wage? I doubt it affects many native workers, no dobut they see the benefit system as more lucurative, that's partly why the government pushes through rises to close the gap somewhat.

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Guest magnoliawalls
yes, £5.05 an hour works out at £9978 a year for a 38 hour week............

How can anyone live on this anywhere in the UK?..........

We're constantly told how the average income is £25000 .......

Say you are single and have no children £9978 amounts to around £190 per week

Say rent (houseshare) is £90 per week, food and utilities £50, that leaves another £50 a week for clothes, transport, entertainment and savings.

Not much but certainly feasible. You don't need nearly as much money as you think.

If there are children involved there will be other benefits.

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Impressive aren't they?The first means tested repayable benefit.

A few more of those and we're sorted.

Job seekers you pay back. HB you pay back. Retirement cash you pay back from your assets when you snuff if.

You don't pay tax credits back...if you pay tax that goes towards paying all benefits

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£9978 is a gross figure .......which i reckon comes to about £155 a week after tax for which a person without children would get no benefits..............

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Any working person should be better off than those who don't work (except those who cannot through disability).

Everyone's labour is worth more than £5.05 an hour.

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Everyone's labour is worth more than £5.05 an hour.

Agree, unfortunately though we have a lot of middle men to pay also so there's not a lot to go around. Take working in a bar for instance. The profit that each bar staff makes each hour has to cover their own wages, the wages of the ancilliary staff like cleaners, the upkeep of the property, the electric and gas, the council tax, the profits to the drinks manaufacturers, the profits to the distributors, the landlords wage, the regional managers wage, the HR team, the promotions team, the directors of the company, and the shareholders. I'm sure there's a huge number that I've missed too.

I agree that £5.05 is a pittance, but without the minimum I strongly suspect that people who are currently on minimum wage would be a lot worse off.

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Actually, I think this is one of the only good things labour has done since they came to power. Along with tax credits there is enough for people on low incomes to live off, and if house prices hadn't been allowed to balloon then we'd be doing ok. Personally I believe in a flat tax rate and simplifying the system, but the minimum wage seems to of been a good thing, a lot of my mates don't earn that much and they have been helped by minimum wage pushing up earnings and tax credits.

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  • 301 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% +
      • down 2.5%
      • Even
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      • up 5%



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