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What is £8ph in 2020 worth in 2014 £s?!

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Comments

  • padington
    padington Posts: 3,121 Forumite
    Yeah, I was shocked at what a poor announcement this was, especially considering the timing. It almost made me feel suspicious that it may have been designed to be an underwhelming announcement for some more convoluted strategic reason, it was that bad.
    Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.
  • Labour's proposals on the mansion tax and re-introducing the 50% tax rate are just another example of them punishing the diligent and the risk takers in our society.

    Anyone who votes for these communists really needs their head looking at
  • IronWolf
    IronWolf Posts: 6,445 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    My wages haven't risen by even inflation in years.

    Considering Labour always bang on about the 'squeezed middle', I'm surprised by this announcement. Who are the main employers of people on NMW -> retailers, and so what will they do when costs go up -> increase prices.

    So who is worse off? -> middle income families.
    Faith, hope, charity, these three; but the greatest of these is charity.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    If you were to use a realistic rate of inflation then this would mean a real pay cut.
  • Generali wrote: »
    If you were to use a realistic rate of inflation then this would mean a real pay cut.

    Personally I had assumed that this is all Ed has done. He's assumed [hopefully wrongly] that Labour will get to power, and within 5 years he will have made such a hash of the economy that we are back to 8%/12% inflation......

    Against that, £8 is a massive cut!

    Anyone who wants to give a real commitment to NMW should articulate it as offering to increase it by CPI plus 1% for 5 years in a row [or similar].

    Before 2015, I think the two Eds will have plenty of time to shoot themselves several times in the foot and become completely unelectable.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Even if you use an inflation rate of 2.5%, if you say that he's promising this by the end of 2020 that means a real pay cut.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    IronWolf wrote: »
    Who are the main employers of people on NMW -> retailers, and so what will they do when costs go up -> increase prices.

    More likely to find ways of employing fewer staff and employing more technology. Ala Tesco self check out.

    Aldi and Lidl prove that prices count. Both pay reasonable rates of pay but their employees work extremely hard and have to multi task. Something a unionised workforce would struggle to adapt to.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Most people (with kids) won't notice as the increase will be a decrease in various tax credits they get. Single people would notice as they'd earn more. The Govt will notice as they'll have less tax credits claims and pay out less.
  • Generali wrote: »
    Even if you use an inflation rate of 2.5%, if you say that he's promising this by the end of 2020 that means a real pay cut.

    No it doesn't.

    £6.50 (from October 14) compounded by 2.5% for 6 years would be £7.53.

    Essentially the £8 implies 3.5% compound growth
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