MSE News: Benefits 'may be linked to pay, not inflation'

Former_MSE_Darryl · 18 September 2012 at 11:21AM

"Benefits may be linked to average pay rather than inflation, according to reports ..."

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Benefits 'may be linked to pay, not inflation'

somethingcorporate · 18 September 2012 at 11:55AM

And rightly so. Seems bitterly unfair that those on low pay see their pay frozen or tiny increases whilst those on benefits see 5%+ rises. It encourages the wrong kind of behavior.

working · 18 September 2012 at 1:10PM

Common Sense at last.

Morlock · 18 September 2012 at 1:14PM

What a great motivation for government to encourage businesses to keep wages low. Don't raise wages because the benefits bill will increase, yet all of the ignorant sheep bleat "Yes, great idea, at last." Stupid, stupid people.

alinwales · 18 September 2012 at 1:27PM

I think it's shareholders who encourage businesses to keep wages low, not the Government.

BigAunty · 18 September 2012 at 1:32PM

Haven't they tinkered before with what benefits were tied with and how benefit increases are calculated?

I seem to remember reading that if JSA had kept pace with some other kind of tracking system, it would be worth £120 a week now instead of £71. Can't remember what it was linked with though, such as cost of living or inflation or whatever.

Having said that, a person on NMW wouldn't be too happy with job seekers earning around 60% of what they do for a 35 hour week.

foofi22 · 18 September 2012 at 1:34PM

Morlock wrote: »

What a great motivation for government to encourage businesses to keep wages low. Don't raise wages because the benefits bill will increase, yet all of the ignorant sheep bleat "Yes, great idea, at last." Stupid, stupid people.

Not sure what talking sheep have to do with this.

Yes, great idea, at last

Cpt.Scarlet · 18 September 2012 at 1:35PM

somethingcorporate wrote: »

And rightly so. Seems bitterly unfair that those on low pay see their pay frozen or tiny increases whilst those on benefits see 5%+ rises. It encourages the wrong kind of behavior.

Like eating proper food, heating your home in the winter, making sure your children are clothed, you're right, truly awful behaviour.

Morlock · 18 September 2012 at 1:41PM

alinwales wrote: »

I think it's shareholders who encourage businesses to keep wages low, not the Government.

A combination of both, but this policy would give more motivation for the government to intervene. Tories would like to see the minimum wage scrapped, whilst Labour have discussed introducing a living wage. A sum which more realistically reflects the cost of living. The government play a huge role in the level of wages.

Morlock · 18 September 2012 at 1:42PM

foofi22 wrote: »

Not sure what talking sheep have to do with this.

Yes, great idea, at last

Baaaaahhh!

seven-day-weekend · 18 September 2012 at 1:52PM

Fair enough. People on NMW often don't have a rise every year (unless the NMW is increased). Don't see why it should be any different for those on benefits.