NOW OPEN: the MSE Forum 'Ask An Expert' event. This time we'd like your questions on TRAVEL & HOLIDAY DEALS. Post by Wed and deals expert MSE Oli will answer as many as he can.

'Real living wage' to rise to £9 an hour - MSE News

Around 180,000 workers employed by firms which offer the 'real living wage' will see their pay increase by 25p an hour, or 30p an hour in London...
Read the full story:
''Real living wage' to rise to £9 an hour'
OfficialStamp.gif
Click reply below to discuss. If you haven’t already, join the forum to reply.
«134

Replies

  • motorguymotorguy Forumite
    22.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    Great news for workers, although low margin / small businesses are struggling even with NMW...
  • CakeCrusaderCakeCrusader Forumite
    1.1K Posts
    Forumite
    The Government need to pull their fingers out and do something about the shareholders/owners/directors of large businesses creaming off the profits instead of paying their staff a decent wage. I'm all in favour of paying staff enough so they can live, but the problems is that their bosses (not all of them) expect to have the same profits so it's the customer who ends up paying more, and it's the customer who ends up paying for pay rises. If I'm paid an extra £250 a year, that's nice, but if I'm paying out £250+ because businesses are recouping any wage increases by increasing the cost of goods then that's not helpful, it just pushes the cost of living up further.
  • Comms69Comms69 Forumite
    14.2K Posts
    10,000 Posts Third Anniversary Name Dropper
    Forumite
    The Government need to pull their fingers out and do something about the shareholders/owners/directors of large businesses creaming off the profits instead of paying their staff a decent wage. - such as what? I'm all in favour of paying staff enough so they can live, but the problems is that their bosses (not all of them) expect to have the same profits - usually it's higher profits. But there's a good reason for that. Investors will go elsewhere if their return drops. so it's the customer who ends up paying more, and it's the customer who ends up paying for pay rises. If I'm paid an extra £250 a year, that's nice, but if I'm paying out £250+ because businesses are recouping any wage increases by increasing the cost of goods then that's not helpful, it just pushes the cost of living up further.


    That's how economies grow. You cant dictate what businesses price there products at (with some limitations ofcourse) and you cant dictate how owners (who are taking the risks) spend their profits.
  • PasturesNewPasturesNew Forumite
    70.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    MSE_Naomi wrote: »
    Around 180,000 workers employed by firms which offer the 'real living wage' will see their pay increase by 25p an hour, or 30p an hour in London

    Not many then, eh.
  • FebruarycatFebruarycat Forumite
    1.4K Posts
    Part of the Furniture 1,000 Posts Combo Breaker PPI Party Pooper
    Forumite
    Good news for me then as I am paid the Living Wage for my part time job, every bit helps when your on a budget.
  • rmg1rmg1 Forumite
    3.1K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    Potentially slightly off-topic but what happens when the wage rise reduces benefits by more than the pay rise?
    For example (I can't remember exact figures so I'll use estimated ones):-
    My OH got a pay rise of £1000/year last year.
    She claims benefits to help with the cost of childcare (Working Tax Credits, I think) due to low income.
    The Working Tax Credits allowance was reduce by £1000.

    Most people would say that's fine, it's like for like.
    But, unfortunately, it's not.

    The £1000 pay-rise was pre-tax so she got less than that in her pay-packet (taking onto account PAYE, NI and pension).
    As Working Tax Credits is worked out on pre-tax earnings (according to the Tax Office), she ended up out of pocket by around £200 for the year.

    So much for the "pay-rise".
    :wall: Flagellation, necrophilia and bestiality - Am I flogging a dead horse? :wall:

    Any posts are my opinion and only that. Please read at your own risk.
  • Gavin83Gavin83 Forumite
    8.4K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    The Government need to pull their fingers out and do something about the shareholders/owners/directors of large businesses creaming off the profits instead of paying their staff a decent wage.

    Why shouldn't they? It's the owners who take the biggest risks and generally put in a hell of a lot of hard work to get their business to a profitable level. One of the big advantages to starting your business is the potential profits, if you start limiting that you'll limit business.

    Also wages are exactly where they should be, if they're too low businesses will struggle to fill the positions and they'll have to increase.
    If I'm paid an extra £250 a year, that's nice, but if I'm paying out £250+ because businesses are recouping any wage increases by increasing the cost of goods then that's not helpful, it just pushes the cost of living up further.

    And here lies my biggest issue with the NMW and the living wage for that matter. Salaries increase, prices increase and ultimately those at the bottom are no better off. It just pushes more people into that bottom bracket.
  • Comms69Comms69 Forumite
    14.2K Posts
    10,000 Posts Third Anniversary Name Dropper
    Forumite
    rmg1 wrote: »
    Potentially slightly off-topic but what happens when the wage rise reduces benefits by more than the pay rise?
    For example (I can't remember exact figures so I'll use estimated ones):-
    My OH got a pay rise of £1000/year last year.
    She claims benefits to help with the cost of childcare (Working Tax Credits, I think) due to low income.
    The Working Tax Credits allowance was reduce by £1000.

    Most people would say that's fine, it's like for like.
    But, unfortunately, it's not.

    The £1000 pay-rise was pre-tax so she got less than that in her pay-packet (taking onto account PAYE, NI and pension).
    As Working Tax Credits is worked out on pre-tax earnings (according to the Tax Office), she ended up out of pocket by around £200 for the year.

    So much for the "pay-rise".



    Tax credits aren't reduced £ for £...
  • rmg1rmg1 Forumite
    3.1K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    Comms69 wrote: »
    Tax credits aren't reduced £ for £...

    In the case of my OH, that's how it turned out.
    In fact, she ended up worse off.

    Has anyone noticed, cost of living increases so wages increase, but the threshold for benefits doen't seem to move?
    :wall: Flagellation, necrophilia and bestiality - Am I flogging a dead horse? :wall:

    Any posts are my opinion and only that. Please read at your own risk.
  • Comms69Comms69 Forumite
    14.2K Posts
    10,000 Posts Third Anniversary Name Dropper
    Forumite
    rmg1 wrote: »
    In the case of my OH, that's how it turned out.
    In fact, she ended up worse off.

    Has anyone noticed, cost of living increases so wages increase, but the threshold for benefits doen't seem to move?


    Here's the link: https://www.litrg.org.uk/tax-guides/tax-credits-and-benefits/tax-credits/how-do-i-calculate-tax-credits


    Benefits have been frozen for a long time. yes they need a catch up.
This discussion has been closed.
Latest MSE News and Guides

Energy Price Cap change

Martin Lewis on what it means for you

MSE News

Best £1 you've ever spent?

Share your most impressive bargains

MSE Forum