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How To Correct This Financial Imbalance?

(3 Posts)
HollyDaze Thu 25-Sep-14 14:56:25

I have just been reading a news report from the Bank of England saying that if pay continues to fail to keep pace with productivity, they will have to hike the interest rates. To me, this says rather a lot about the habit of low pay.

However, when reading the comments, one person said that people should save when times are good for when times are not so good (obviously never had to live hand to mouth then!) and one reply said 'i am taking my hours down at my job at the moment i get £7.30 an hour 40 hours a week after tax £1060 a month going down to 16 hours a week i will get £467 from my work £700 housing benefit 800 off my council tax for the year so 66 a month and up to 15 a week for travel expenses to work so i will get £1293 a month for doing a 3rd of the work'.

How on earth can that be good for the country? Shareholder profits above what's in the government's pot? How can this be resolved?

Nonnie Thu 25-Sep-14 15:41:15

You can't blame anyone for doing that really but it seems all wrong to me. I know small employers will say they can't afford to pay more and it may well be that some large employers are in the same position because of market changes. Wish I had the answer.

Maybe as the unemployed numbers continue to fall employers will have no choice but to pay more to get the calibre of staff they need? Then of course we will all complain that prices go up, exports tail off..............................

goldengirl Thu 25-Sep-14 17:13:11

I've just had the new pension arrangements explained to me today - and wading through all the confusion it seems that smallish companies like ours will be paying higher employer contributions. That together with higher salaries and company benefits, you have to think very carefully before taking on new staff and making a profit. Whilst I baulk at price hikes like everyone else I do understand the reason for some of them at least