MSE News: Minimum wage to rise 3%

Former_MSE_Helen

The national minimum wage for adults is to increase by 3% – 20p an hour – from 1 October, the Government has announced...

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Minimum wage to rise 3%




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falko89

Forgive me for not getting excited. 20p per hour, WOW.

We'll just take that of your tax credit claim. What Mr Cameron giveth he takes away in the same fell swoop. Meanwhile employers and bushiness put prices up to recoup the costs of the increase leaving the poor worse of again. But its the thought that counts I suppose.

falko89

blondebubbles wrote: »

Tax credits would reduce by 41% rather than the full amount. And only if over certain thresholds.

Well Housing Benefits then. They will reduce by the full amount

bluenoseam

Still laughable & making a complete mockery of Labour's plans to increase it to £8 by the end of the next parliament, which if you're halfway sane you'll know is on course to happen anyway. Should be raised to the living wage level which would not only kickstart the recovery for those who still aren't feeling it, but also increase the revenues earned through taxation. Then again, expecting a politician to understand the need for higher minimum wages is pointless, vast majority of them have never been anywhere near that level & are too busy with their noses in the trough to care.

falko89

bluenoseam wrote: »

Still laughable & making a complete mockery of Labour's plans to increase it to £8 by the end of the next parliament, which if you're halfway sane you'll know is on course to happen anyway. Should be raised to the living wage level which would not only kickstart the recovery for those who still aren't feeling it, but also increase the revenues earned through taxation. Then again, expecting a politician to understand the need for higher minimum wages is pointless, vast majority of them have never been anywhere near that level & are too busy with their noses in the trough to care.

Doing away with tax for those on say £15K or less would be more benefit.

falko89

blondebubbles wrote: »

Why £15,000?

I liked the nice round figure That takes you to around the £7 per hour mark in a job 40hrs per week.

jamesd

It would be nice if Chuka Umunna didn't mislead voters in this way:

"Chuka Umunna MP, Labour's Shadow Secretary of State for Business, Innovation and Skills, says: "This 20p rise falls far short of the £7 minimum wage which George Osborne promised over a year ago. Ministers have misled working families who have been left worse off."

Mr Osborne did not "promise" a £7 minimum wage. Any of us can see what he really did say in the video in the BBC story Osborne wants above-inflation minimum wage rise. Here's my transcript of that interview that I just made so we can all see the truth:

Osborne: Because we're fixing the economy, because we're working through our plan, I believe Britain can afford an above-inflation increase in the minimum wage so we restore its value for real people and we make sure we have a recovery for all and that work always pays.

Robinson: When you talk of restoring the real value of the minimum wage you don't set the figure but what sort of figure are we talking about?

Osborne: Well, the exact figure has to be set by the Low Pay Commission, which talks to business. talks to other bodies in our economy. But if, for example, the minimum wage had kept price with inflation it would be seven Pounds by 2015/16, it's £6.31 at the moment. So that's an increase. I think we can see an above-inflation increase in the minimum wage and do it in a way that actually supports our economy precisely because the economy is recovering and many many jobs are being created.

Robinson: Just a few days ago you warned against a self-defeating increase in the minimum wage. Many business leaders worry that it will force them to increase jobs. Why do you think that such a big increase will not have that effect?

Osborne: Well of course we have to make the exact calculation of what the rate should be. That's for the Low Pay Commission, created by a Labour government, supported by this government, to make the independent decision on the number itself but when I look at the British economy I see the British economy expanding, I see jobs being created, I see the prospect of future jobs being created as well and I think Britain can afford a higher minimum wage. I think we've worked hard to get to this point and we can start to enjoy the fruits of all that hard work.

Since the £6.31 mentioned in that interview there was the first real (after inflation) increase in the minimum wage since 2008 last October to £6.50, a 3% increase, and now this second planned 3% increase from £6.50 to £6.70.

The minimum wage was £5.80 in 2009-10 when the income tax personal allowance was 6475 so income tax on minimum wage for 40 hours a week for 52 weeks, £12,064 a year, was £1117.80 leaving an after income tax level of £10,946.20.

The 2015/16 minimum wage is to be £6.70 with a current planned personal allowance of £10,600 so income tax on that annual £13,936 would be £667.20 leaving an after income tax level of £13,268.80.

So an after income tax increase from £10,946.20 to £13,268.80, 21.2%, which is an average increase per year over six years of 3.26%.

So the claims:

Osborne promised a £7 minimum wage: he didn't.
worse off: not true. Average after income tax increase in minimum wage of 3.26%, above inflation.

I know Labour policy is to try to portray the current government as being bad for "workers" but the huge increase in the personal allowance has been great news for low earners.

Pincher

If I was on a zero hour contract, I would prefer a guaranteed minimum for the whole shift. What's the point of getting £7 for an hours work, if you spent £4 on bus fare, and one hour each way getting there?

[Deleted User]

I guess I'm really easily pleased, something to look forward to

bluenoseam

I must be one of the few then who is personally unhappy at the rise in personal allowance as I have no qualms whatsoever about paying tax - it's part of what a socially responsible person does. I was happy paying my bit when the tax allowance was significantly lower as it's the right thing to do - the raising of the allowance was never an altruistic thing by the government anyway. It was done so they could laud something "we cut the tax of the lowest paid in society" when the reality is they also cut the tax of the richest in society as well - and have failed to punish the very richest who avoid it at every turn! Perhaps I'm alone in thinking that, but alas it makes not a blind bit of difference to the fact the minimum wage is problematic on a great many levels & needs radically overhauled.

Polarbeary

In a few years, who will be left to clean and man the retail stores in London on a minimum wage?