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National living wage - £7.20 from April 2016

From the budget

The government will therefore introduce a new National Living Wage (NLW) for workers aged 25 and above, by introducing a new premium on top of the NMW. From April 2016, the new NLW will be set at £7.20 – a rise of 70p relative to the current NMW rate, and 50p above the NMW increase coming into effect in October 2015.
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Comments

  • Marktheshark
    Marktheshark Posts: 5,841 Forumite
    Seventh Anniversary 1,000 Posts Combo Breaker
    Rising to £9
    Hats off to them, companies raking millions a year in profits paying crap wages so the tax payer has to top it up in benefits.
    For a Tory Government it is the most social based policy to be implemented.

    Lets be honest, if you are a multi million pound retailer, why should you pay staff less than they need to live off.
    I do Contracts, all day every day.
  • Fireflyaway
    Fireflyaway Posts: 2,766 Forumite
    Fifth Anniversary 1,000 Posts
    Its good news for some, but I'm sure it will lead to some small companies having to lay off staff.
  • tomtontom
    tomtontom Posts: 7,929 Forumite
    Rising to £9
    Hats off to them, companies raking millions a year in profits paying crap wages so the tax payer has to top it up in benefits.
    For a Tory Government it is the most social based policy to be implemented.

    Lets be honest, if you are a multi million pound retailer, why should you pay staff less than they need to live off.

    Large retailers will simply pass on the additional cost to their customers. It is the small retailers that this will impact the most, and the only option they will have is to reduce staffing levels. This is not the win some think it is.
  • bap98189
    bap98189 Posts: 3,803 Forumite
    Part of the Furniture 1,000 Posts
    Its good news for some, but I'm sure it will lead to some small companies having to lay off staff.

    That is the argument rolled out every time someone proposes increasing the minimum wage. It was the argument used when it was proposed to bring in a minimum wage. The reality is that some will, but most won't, because it will even out as the price of goods/services increases.
  • ohreally
    ohreally Posts: 7,525 Forumite
    1,000 Posts Combo Breaker
    Rising to £9


    By 2020......
    Don’t be a can’t, be a can.
  • GothicStirling
    GothicStirling Posts: 1,157 Forumite
    All that will happen is that is that the cost of living will keep rising, so we'll be no better off. Still, I'll believe it when I see it.
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    bap98189 wrote: »
    That is the argument rolled out every time someone proposes increasing the minimum wage. It was the argument used when it was proposed to bring in a minimum wage. The reality is that some will, but most won't, because it will even out as the price of goods/services increases.

    And the rise in the price of goods/services cancels out the rise in wages, so those people end up no better off.
  • bluenoseam
    bluenoseam Posts: 4,612 Forumite
    What concerns me is that some employers - inclusive of big names in the UK - will simply cut staff. Ultimately I fear for my job more now after this than I have ever done because as I do not currently have 2 years service time I can be sacked tomorrow with no comeback.

    Besides, it's also hideously misleading - the "LIVING WAGE" is £7.85 outside London, what they're proposing is no living wage by any stretch. What also sickened me to my core was the sight of Iain Duncan Smith celebrating, that honestly felt very disrespectful, classless & disgusting.
    Retired member - fed up with the general tone of the place.
  • t0rt0ise
    t0rt0ise Posts: 4,509 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    What I think is hilarious is that by 2020 or even earlier, the minimum wage will be a good bit higher than the lowest band in the NHS so the government will have to fund an increase in NHS salaries. I've just left the NHS so it will make no difference now to me, but I shall watch with amusement.
  • skibadee
    skibadee Posts: 1,304 Forumite
    Could someone clarify this for me please.
    Will the Living Wage REPLACE the NMW from April 2016?
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