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Minimum Wage Increases To £6.31 Across The Uk

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http://www.bbc.co.uk/news/business-24340661

The national minimum wage for adults increases by 12p an hour to £6.31 from Tuesday.

The rise, first announced in April of this year, follows the recommendations of the independent Low Pay Commission.

Unions are calling for a steeper jump, however, with the TUC general secretary Frances O'Grady saying a "far bigger increase" is needed.

"The UK's lowest-paid workers are now facing an historic living standards crisis," she said.

Sadly I have no idea how they expect people on these wages to afford a house.

This gives you a wage of £13124.8 a year for a 40 hour week. If you don't have children clearly you will be struggling if you live on your own.

So the govt helping to increase business costs, what could possible go wrong.

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Osborne's planning to make people work 30 hours a week for their £56.80 JSA, a wage of £1.89 an hour.

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http://www.bbc.co.uk...siness-24340661

Sadly I have no idea how they expect people on these wages to afford a house.

This gives you a wage of £13124.8 a year for a 40 hour week. If you don't have children clearly you will be struggling if you live on your own.

So the govt helping to increase business costs, what could possible go wrong.

why do we still have NMW? with all the tax credits and benefits the NMW is irrelevant. with 2/3 kids you will be top up like you would earn £40k pa

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Osborne's planning to make people work 30 hours a week for their £56.80 JSA, a wage of £1.89 an hour.

plus housing benefit, child benefit, tax credits, etc ... much more than NMW

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why do we still have NMW? with all the tax credits and benefits the NMW is irrelevant. with 2/3 kids you will be top up like you would earn £40k pa

not everyone has kids under 18

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Please remind me, what is the point of working again when you cannot afford your own secure accommodation, kids or holidays etc.

This is why they are threatening slavery, as there is no point in working any longer.

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plus housing benefit, child benefit, tax credits, etc ... much more than NMW

People on NMW get these things...

Edited by Dorkins

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Please remind me, what is the point of working again when you cannot afford your own secure accommodation, kids or holidays etc.

This is why they are threatening slavery, as there is no point in working any longer.

Yes, I think that this policy goes hand in hand with housing/debt policy. Financial bondage.

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why do we still have NMW? with all the tax credits and benefits the NMW is irrelevant. with 2/3 kids you will be top up like you would earn £40k pa

I would rather have a higher NMW and a cut in benefits.

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I would rather have a higher NMW and a cut in benefits.

Or even lower housing costs so that wages could cover them without the need for rent subsidies.

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I think it should be £20 an hour as look how much a CEO gets paid. Surely the government can pick whatever min wage it likes with zero consequence. :rolleyes:

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12p an hour for some people.

Tax credits are going up by 0%,NMW by 2%.

So single persons wage up,£4.32 (37 hours)

Single persons tax credits up 0.00p a week.

Income threshold not increased.

Withdrawal rate 41%,,

So wage increase of £4.32 reduces tax credits by £1.76.

So pay rise now = £2.56,now 1%.

Housing benefit threshold going up by 1%.

Single persons threshold going up by £0.72p

So £2.56 increase - 0.72p = £1.84

£1.84 clawed back for housing benefit at 60% = £1.10.

So £2.56 - £1.10 = £1.46

So the worker on NMW living alone is not seeing a "wage" rise of £4.32,they are seeing one of £1.46 or around 0.7%.

The headline should read due to our insane benefit system and high house prices/rents,people working full time will see their income rise by 0.7% while inflation runs at 4%+ on essentials.

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12p an hour for some people.

Tax credits are going up by 0%,NMW by 2%.

So single persons wage up,£4.32 (37 hours)

Single persons tax credits up 0.00p a week.

Income threshold not increased.

Withdrawal rate 41%,,

So wage increase of £4.32 reduces tax credits by £1.76.

So pay rise now = £2.56,now 1%.

Housing benefit threshold going up by 1%.

Single persons threshold going up by £0.72p

So £2.56 increase - 0.72p = £1.84

£1.84 clawed back for housing benefit at 60% = £1.10.

So £2.56 - £1.10 = £1.46

So the worker on NMW living alone is not seeing a "wage" rise of £4.32,they are seeing one of £1.46 or around 0.7%.

The headline should read due to our insane benefit system and high house prices/rents,people working full time will see their income rise by 0.7% while inflation runs at 4%+ on essentials.

A marginal rate of 66%

Can you imagine if the 50p rate had been put up to 66%? The screams and wails of horror from people who already take home a huge wedge would have split eardrums for miles around.. but if it's poor people then it's OK.

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I think it should be £20 an hour as look how much a CEO gets paid. Surely the government can pick whatever min wage it likes with zero consequence. :rolleyes:

Because econometric computer models are always right, even when their fundamental assumptions are proven false..

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Because econometric computer models are always right, even when their fundamental assumptions are proven false..

exactly...the computer is always right...dare not argue against a pile of fanfold.

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A marginal rate of 66%

Can you imagine if the 50p rate had been put up to 66%? The screams and wails of horror from people who already take home a huge wedge would have split eardrums for miles around.. but if it's poor people then it's OK.

Never mentioned is it.Add in transport cost increases just to get to work and its likely this is a wage cut even before all other food/fuel/general inflation.

At least if IDS had got universal credit it the rate would be only 60%.

The removal of income for lowest paid worker in country 66%.

The removal of income from highest paid worker 50%.

Those darn lazy scroungers.

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The only ones to benefit from low wages are the companies that pay them....they know top-ups will be given by the state (the rest of us) and those top-ups will be spent at their establishments.....win-win for them. ;)

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Hey how about raising interest rates so we import less inflation it becomes worth being financially responsible again and housing costs can reduce to affordable levels which will also reduce the housing benefit bill. You think if osbourne & cameron heard that their heads would explode?

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The only ones to benefit from low wages are the companies that pay them....they know top-ups will be given by the state (the rest of us) and those top-ups will be spent at their establishments.....win-win for them. ;)

In the 80s the argument was the reason large swathes of industry had to be closed was that we couldn't have profitable companies being taxed to pay for the loss making ones.In affect the likes of GlaxoSmithKline shouldn't be taxed to keep British Steel open.

So how come now its ok to tax the likes of GlaxoSmithKline who I doubt has many workers on tax credits to pay for Tescos wages bill?

That's why I support some form of citizens income,however low and however harsh because it makes peoples Labour an asset they can sell again.

Right now as shown in the example wages at the low end don't matter,,its how much benefits go up,the taper rates change and the allowable earnings threshold moves.

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A marginal rate of 66%

Can you imagine if the 50p rate had been put up to 66%? The screams and wails of horror from people who already take home a huge wedge would have split eardrums for miles around.. but if it's poor people then it's OK.

I'm on good wage and did a similar calculation. It came out at 63%. That shocked me into changing the way I do things. I stopped extra contract work and do a lot more things for myself. I'm using my time to repair/extend a house and outbuildings where any gains are tax-free.

When you realise that two thirds of your effort is wasted, it kills any motivation to do anything.

One guy in the office has just dropped down to a four day week, he says the tax/benefits % means its not worth working a 5th day. So a better quality of life for very little drop in net income.

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