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Legal, pensions and money

Rise in living wage

(67 Posts)
GabriellaG54 Sun 05-May-19 18:47:04

News this afternoon includes Philip Hammond announcing plans for a rise in the living wage to £9.61ph, making Britain's minimum wage, the highest in the world.
Net of tax, a single person would take home about £320 for a 38hr week.
That should make quite a few people happy. No more poverty wages.
Employers will have to find the money from somewhere or look to the back economy.

GabriellaG54 Sun 05-May-19 18:58:32

back black

GrannyIris5 Sun 05-May-19 19:08:26

My tight employer is now giving me 9p an hour over the minimum. Been with him for years. Only couple of reasons I stay is I can walk it and I’m too old to get another job. Bring it on Mr Hammond.

GabriellaG54 Sun 05-May-19 19:33:28

I'm pleased for you. Let's hope it's implemented soon.

Anniebach Sun 05-May-19 19:52:17

It will also make people jobless .

mcem Sun 05-May-19 19:53:18

Minimum wage or living wage? Must check.

Whitewavemark2 Sun 05-May-19 20:02:56

I wouldn’t hold your breath. Hammond is unlikely to last much longer. Once May goes, everything is up for grabs I’m afraid.

Ilovecheese Sun 05-May-19 20:08:32

This is good news that a member of the Government is thinking about something other than brexit.
The minimum wage and rises in the minimum wage have always been greeted with cries of "people will lose their jobs" "no one will want to take on new staff", usually from Conservatives.
This has been proved time and again not to be the case and it is good to see that a Conservative minister realises this.

maryeliza54 Sun 05-May-19 20:30:01

This is not happening - he’s thinking about it according to ‘sources’. Sometimes it seems you can certainly fool a lot of the people a lot of the time

Whitewavemark2 Sun 05-May-19 20:33:03

If it happens, and it is a big if, it is 2% pa, and will take until 2025 to reach £9.26.

Please don’t get your hopes up too much.

maryeliza54 Sun 05-May-19 20:42:14

It’s £8.21 from last month for over 25s. This is a fact.

GabriellaG54 Sun 05-May-19 20:58:10

It's better than the proverbial kick in the teeth and, although there are exclusions for the likes of s/e and armed forces among others, if your employers pay just above the minimum wage they are not obliged to raise it to the new minimum.
This is part of the document pertaining to April 2019 on the government website. Of course, this raises the question as to whether those same rules will apply if Philip Hammond's plan materialises and what will employers think.
Will it apply to all ages or will it be age incremental as it is now?
That might mean that many companies will want a clear gap between the bottom and top tier wage structure, therefore, every wage/salary will have to move upwards.
It could cause some small businesses to struggle more than at present.
Prices of goods and services might well rise.
? Has he thought about the repercussions?
All a bit might and could at the moment. We will find out in due course. ?????

GabriellaG54 Sun 05-May-19 20:59:45

We know what the facts are. Any fool can look it up.
This is new news from the Chancellor.

Whitewavemark2 Sun 05-May-19 21:02:36

Given the Tories utterly abysmal record, and zero room for manoeuvre, expect these sort of “announcements” but be careful to check the facts.

GabriellaG54 Sun 05-May-19 21:08:40

Whitewavemark2
Hmm, I wonder whether pensions will rise by the same percentage if indeed the minimum wage is increased.

Anniebach Sun 05-May-19 21:08:43

Any mention of enployers and many think Amazon, M&S, etc

There are many, many small towns in this country with small businesses and so many are struggling now . Where I live , 20 miles bus rides to get to the next towns to look for work if made redundant, and very little chance anyway because there will be the same problems

GabriellaG54 Sun 05-May-19 22:01:51

Anniebach
I realise that it will hit small businesses hardest as we see it on every High Street and in villages too. Companies such as Amazon and Marks with a wide reach in different countries are not immune but, they often have the luxury of a financial cushion and better borrowing rates from banks.
What to do...the money must come from somewhere and higher prices seem the most likely way to sustain higher wages, however, that makes it a ridiculous proposition as no-one will be better off.

Anniebach Sun 05-May-19 22:05:01

True Gabriella

M0nica Sun 05-May-19 22:24:02

Some rules of economics are immutable. If the cost of producing a product or service goes up then so must the price. No one can afford to produce or do something if they cannot have sufficient profit to live on.

It is amazing how many people do not understand this basic economic law

Anniebach Sun 05-May-19 22:31:48

Some employers will pay cash in hand , not have to pay NIC or pension contributions

M0nica Sun 05-May-19 22:40:41

But only a few, any reputable company in the tax system cannot. I heard on the news today that HMRC has been chasing up unregulated dog breeders. They located about three hundred and one has been resented with a back tax bill of nearly £500,000

GracesGranMK3 Sun 05-May-19 22:44:37

I really do wonder what is so awful in your life Gabriella, that you are driven to begrudge other people having enough to live on in a reasonable way.

Of course, some businesses will find it difficult and help should be available where necessary, but you are certainly not backward in wanting the rules changed to suit you. Isn't that exactly why you have been so strident in your support of the Tories?

maryeliza54 Sun 05-May-19 22:45:49

Ah but MO in some cases surely the profit being made is great enough that the price wouldn’t have to be increased to absorb extra costs?

Anniebach Sun 05-May-19 22:46:04

I didn’t mean all their staff and it can be done

paddyann Sun 05-May-19 22:59:54

tHE Scottish LIVING WAGE is£9 an hour and has been since 2018 ,when the so called living wage ..the minimum wage re marketed by WM was £7.38 (or £7.83) an hour..not sure of the figure.The Living wage is paid voluntarily by companies and new companies sign up every week.Just another reason to vote SNP ...