Pay drop for those under 22

charlotte1994

https://www.msn.com/en-gb/money/news/martin-lewis-warning-to-uk-workers-over-22-youre-about-to-see-your-pay-drop/ar-BBTQJpf?ocid=spartanntp


On the one hand, I see it as a good idea. On the other, people under 22 already have lower wages than those over 25. I don't think it's very fair when young people will still have bills to pay! Bills aren't cheaper because someone is on a lower wage. Way to lower someone's wage even further. No wonder more and more people are living at home into their late 20s!!!

MSE Insert:

Also read Martin's blog on MSE:

https://blog.moneysavingexpert.com/2019/02/martin-lewis--a-warning-to-every-uk-worker-aged-22---you-re-like/

Comms69

charlotte1994 wrote: »

https://www.msn.com/en-gb/money/news/martin-lewis-warning-to-uk-workers-over-22-youre-about-to-see-your-pay-drop/ar-BBTQJpf?ocid=spartanntp


On the one hand, I see it as a good idea. On the other, people under 22 already have lower wages than those over 25. I don't think it's very fair when young people will still have bills to pay! Bills aren't cheaper because someone is on a lower wage. Way to lower someone's wage even further. No wonder more and more people are living at home into their late 20s!!!

Typically those under 22 don't have kids.


People are choosing to live at home; and parents are letting them. It's really rather pathetic.

charlotte1994

Comms69 wrote: »

Typically those under 22 don't have kids.


People are choosing to live at home; and parents are letting them. It's really rather pathetic.

I know many who have children under the age of 22.


What choice do they have if they're getting paid peanuts? There's already an affordable housing shortage. This is just making things worse.

Comms69

charlotte1994 wrote: »

I know many who have children under the age of 22. - That is anecdotal though, statistically there aren't that many. in 2017 there were just over half a million parents aged under 25 (UK wide)


In any case, perhaps there shouldn't be; if they're earning NMW? Seems a pretty terrible financial decision; as well as not the best start for the child


What choice do they have if they're getting paid peanuts? There's already an affordable housing shortage. This is just making things worse.

Sorry that's not true.


18-20 = £5.50 ph
21-24 = £7.05 ph
25+ = £7.50 ph


Even on the baseline wage at FT hours


18-20 = £900 a month
21-24 = £1145 a month
and 25+ = £1220 a month


Given that rooms are available for £300-350 a month, it's perfectly affordable to move out; especially for people 'well into their 20s'

getmore4less

Do these auto pension contribution act like a salary sacrifice getting NI back as well?

tacpot12

This is not a pay drop. The employees are still being paid the same and the employers wage bill is still the same, it is just that some of their pay is being paid into a scheme that will pay them something over and above the state pension when the worker retires. Given the fact that young people have not prioritised pensions saving in the past, the government has stepped in to ensure that they save something for their retirement.

The fact that the employees get a tax boost from doing this, so they pay less tax, and if their employer uses salary sacrifice, less NI, it's a win-win-win.

[Deleted User]

pfft. My place pays the 20 year the same as me. And is doing an NVQ whereas I was told not to bother. Seriously the 20 year is on nearly 5k more then when I left a job in 2012 after 5 years service and 5 years of independence.

As the older person I am actually feel I'm more the bargain! the 20 year did try telling me my salary rate won't go up when it's time for the rising to £8.21 for a 25+ so I'm sure equally fun times ahead.

I was hoping we could constructively stand together on a rise for doing shift work but no one seems keen. It's each to their own on the fight over self value sadly.

Comms69

Deleted%20User wrote: »

pfft. My place pays the 20 year the same as me. And is doing an NVQ whereas I was told not to bother. Seriously the 20 year is on nearly 5k more then when I left a job in 2012 after 5 years service and 5 years of independence.

As the older person I am actually feel I'm more the bargain! the 20 year did try telling me my salary rate won't go up when it's time for the rising to £8.21 for a 25+ so I'm sure equally fun times ahead.

I was hoping we could constructively stand together on a rise for doing shift work but no one seems keen. It's each to their own on the fight over self value sadly.

The downfall of unions is a travesty for the working class.


But unions are only as strong as their members; and if no-one bothers to join...

charlotte1994

Comms69 wrote: »

Sorry that's not true.


18-20 = £5.50 ph
21-24 = £7.05 ph
25+ = £7.50 ph


Even on the baseline wage at FT hours


18-20 = £900 a month
21-24 = £1145 a month+ tax + this new reduction in take home wage.
and 25+ = £1220 a month


Given that rooms are available for £300-350 a month, it's perfectly affordable to move out; especially for people 'well into their 20s'Not everywhere, my friend was paying £500 for a single room when she was at university. My boyfriend was paying £490. It's not the same for everyone.

But their bills are still the same, I still find it very unfair that they are paid less, then told that they are lazy for living at home. Their utility gas/electric bills will all cost the same as yours. Some people don't have a choice either if they're kicked out by their parents.


I don't blame them for living at home for so long since the cost of living is so high

Comms69

charlotte1994 wrote: »

18-20 = £900 a month
21-24 = £1145 a month+ tax + this new reduction in take home wage. - You can opt out of the increased pension if you need to. (Tax is minimal)
and 25+ = £1220 a month


Given that rooms are available for £300-350 a month, it's perfectly affordable to move out; especially for people 'well into their 20s'Not everywhere, my friend was paying £500 for a single room when she was at university. My boyfriend was paying £490. It's not the same for everyone. - Well if you choose to live in a more expensive area, you would expect to do so in exchange for increased wages. It's like complaining you cant live in central London on NMW; obviously.


But their bills are still the same - Many place include bills when you rent a room. , I still find it very unfair that they are paid less, then told that they are lazy for living at home. - That's fine, I think it's unfair that adults rely on their parents to house them Their utility gas/electric bills will all cost the same as yours. Some people don't have a choice either if they're kicked out by their parents. - Use less gas / electric then


I don't blame them for living at home for so long since the cost of living is so high

I do, it's pathetic. Grown up children.


Even if the rent is £500 a month for a room, that still leaves £700...

spadoosh

charlotte1994 wrote: »

But their bills are still the same, I still find it very unfair that they are paid less, then told that they are lazy for living at home. Their utility gas/electric bills will all cost the same as yours. Some people don't have a choice either if they're kicked out by their parents.


I don't blame them for living at home for so long since the cost of living is so high

Literally every younger person i know that works full time and cant afford to move out of their parents house pays nearly a quarter of their wage on car finance. I know someone who is 24 who pays more a month on his car finance than i do for my mortgage, he also complains he cant afford to move out of parents yet earns a good 40% more than me. The reason he cant afford to move out apart from teh car finance is because he think the budget for his house should be the same as what his parents pay for theirs. Ignoring the fact that they are paid more than him and have a generation on him in terms of generating wealth.

I was young. I pay bills, i earn a bit over NMW. I bought my house with my own savings for the deposit when i was 24. The reason i could do this was because my deposit included money i earned when i was 12 years old doing my paper round (basically i saved money). Ive never bought a car that cost more than £1500, theyre typically about £500 incidentally i was the first of my friend group to buy a house.

If theres two people together who work full time on MW you can afford to move out of your parents and buy your own home in the UK. What most younger people fail to understand is that if you put restrictions on this, you will limit that possibility.

So lets assume you earn minimum wage in london. Youre never going to buy a house. Thats a choice someone makes as opposed to 'circumstance' they choose to live somewhere they cant afford to buy a house.

I live in the north west of England, it rains a lot. It would be riddiculous for me to complain every time it rained that it rains a lot. Because its glaringly obvious that that will be the case. This is young people who complain they cant afford things. Its just a case of them not realising what their priorities are.