The cost of the minimum wage increase to you

HornetSaver

The majority of people on this particular forum do not earn the minimum wage or anything close to it. Myself included. However, there is a significantly-sized view that the minimum wage will increase prices for most by at least as much as the amount of direct increase the workers receive.

This thread is therefore for people to put their mouths where their money is, and detail all the price increases they have had to endure and believe are as a result of the minimum wage increase. Specifically excluded is the direct cost of paying people the new minimum wage rate. The intention of this thread is to test the theory that the minimum wage increase is pointless because the pay rise will simply be gobbled up by higher prices, and indeed to debate the numerous pressures on the prices of specific things.

It will be interesting to see how many people's totals pass £19.50 (the average extra amount of money a full time worker on minimum wage will receive). Who knows, this might even turn into a support thread, where we help one another avoid these obscene price rises with MSE-type alternatives. :money:

cells

If 1/10th of the population gets a pay rise of £19.50 per week its likely the costs will increase by around 1/10th of that figure so maybe £2 per week.

As individuals it will be difficult to pick up on this but maybe the ONS RPI basket might do a better job of spotting it

HornetSaver

cells wrote: »

If 1/10th of the population gets a pay rise of £19.50 per week its likely the costs will increase by around 1/10th of that figure so maybe £2 per week.

As individuals it will be difficult to pick up on this but maybe the ONS RPI basket might do a better job of spotting it

That was my initial thought - that on average people's expenses would go up by around 1% (a barely noticeable amount), and that in a competitive market there are ways for even a mere mortal to claw back that 1%, never mind an MSE.

But I've seen plenty of experts on this forum hinting at price rises they have seen already - and therefore are noticeable. I thought this thread could be a focal point in which to bring them all together.

[Deleted User]

We are told that there are 31 million people in work and that 1.3 million will benefit from the new rate for the over 25s.
Some employers will take this out of other benefits they pay employees..see B%Q as a prime example, I therefore suspect that the pressure on inflation will be minimal.

westernpromise

I make it 50p a week to me so far - a medium Americano at Costa has gone up 10p and I have one per working day.

kinger101

westernpromise wrote: »

I make it 50p a week to me so far - a medium Americano at Costa has gone up 10p and I have one per working day.

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/11901915/Costa-coffee-prices-wont-rise-despite-staff-wage-hike.html

ging84

HornetSaver wrote: »

The majority of people on this particular forum do not earn the minimum wage or anything close to it. Myself included.

Sounds like you all need to get down to CAB

N1AK

HornetSaver wrote: »

However, there is a significantly-sized view that the minimum wage will increase prices for most by at least as much as the amount of direct increase the workers receive.

There plenty of stupid views that are held by significant groups of people that doesn't mean they are true or worthy of attention; how about we wait until a credible case is made (if anyone is honestly suggesting the cost of the change will exceed the increase in pay).

Gigervamp

venison wrote: »

Some employers will take this out of other benefits they pay employees..see B%Q as a prime example, I therefore suspect that the pressure on inflation will be minimal.

This.

My son works for Wickes. He gets a premium for being certified to use the forklifts. That's going, to pay for the increase in wages.

HAMISH_MCTAVISH

I actually think the increase in minimum wage is long overdue.

But that's not to say I don't believe it will also have some negative consequences.

Most large employers will be able to make some efficiencies, by for example and as has already been discussed, changing allowances, overtime, running leaner on staffing, using younger staff, hiring less, etc.

So it's not likely the full impact of the first pay rise or two will flow through to retail pricing.... But it will have some consequences.

I do think those efficiencies will only go so far though, and by the time we get through to the third or fourth incremental pay rises it'll really start to show up in pricing and inflation quite noticeably.

CLAPTON

HAMISH_MCTAVISH wrote: »

I actually think the increase in minimum wage is long overdue.

But that's not to say I don't believe it will also have some negative consequences.

Most large employers will be able to make some efficiencies, by for example and as has already been discussed, changing allowances, overtime, running leaner on staffing, using younger staff, hiring less, etc.

So it's not likely the full impact of the first pay rise or two will flow through to retail pricing.... But it will have some consequences.

I do think those efficiencies will only go so far though, and by the time we get through to the third or fourth incremental pay rises it'll really start to show up in pricing and inflation quite noticeably.

probably there will be a reduction in employment resulting from the increase expecially the £9 promised
however, by restricting immigration the UK should be able to mitigate the worst of the undesirable effects.