Sunday, 1 November 2015

The national living wage could leave people to believe they don't deserve better.

The BBC News Website has news that almost six million workers in the UK are paid less than the living wage, 
According to the Beeb
"The data showed a "worrying trend" of part-time, female and young workers being most likely to earn below the figure, researchers found.
The living wage, promoted by the Living Wage Foundation, is currently £7.85 an hour and £9.15 in London. It is not compulsory for employers to pay it.
The government said it was "determined to move to a higher wage economy".
Professional services firm KPMG said its research showed that the proportion of workers earning less than the living wage had risen for three years in a row.
The wage is well above the compulsory national minimum wage, and more than the new national living wage which the government has announced will come into force next April".

The Beeb helpfully  gives a clarification of the rather confusing difrence between the minimum wge and a living wage.
  • The living wage is an informal benchmark, not a legally enforceable minimum level of pay. It is currently £7.85 and £9.15 in London
  • The national minimum wage is the compulsory minimum level of pay set by the business secretary each year on the advice of the Low Pay Commission. Since October 2014, it has been £6.50 an hour for adults aged 21 and over, and £5.13 for those aged 18 to 20
  • In the last Budget the government announced a new compulsory national living wage will come into force from April 2016. It will be paid to workers aged 25 and above. It will be set initially at £7.20 an hour and is intended to exceed £9 an hour by 2020
So on paper the Government will give a fair pay increase to the Low Paid in April but of course as the Tax credits row has shown it will take back much of this from their beloved "Hard Working Families".

Mike Kelly, of KPMG, said: 

"With the cost of living still high, the squeeze on household finances remains acute, meaning the reality for many is that they are forced to live hand-to-mouth.
"The figures show there is still more to be done if we are to eradicate in-work poverty. For some time it was easy for businesses to hide behind the argument that increased wages hit their bottom line, but there is ample evidence to suggest the opposite, in the shape of higher retention and higher productivity.
"It may not be possible for every business, but it is certainly not impossible to explore the feasibility of paying the living wage."
A government spokeswoman said the new national living wage would give a direct boost in wages for 2.7m people in the UK, "meaning a full-time worker will earn over £4,800 more by 2020".

"Treasury analysis shows women and those based outside London and the South East will be the biggest winners when the new national living wage comes into force,"
 It looks good on paper but to me time will tel what the "benchmark" Living Wage will look like in 2020
But Labour's business secretary Angela Eagle said things were getting worse, not better, for many families. 

"We need to see more better-paid, high-skilled jobs which pay a living wage, but these figures show that progress is slipping," she said.
"At the same time the Tories are making life harder for those on low and middle incomes as they cut tax credits and hit families with a work penalty. People are working harder than ever, but will rightly feel that the government is working against them."
 The problem with both a minimum wage and  national living wage is that over time it can be used to justify low pay in that companies can claim that they ae paying a living wage and despite being highly profitable and constantly giving their top echelons pay rises and a bonus deny ordinary workers a pay rise.

People will be expected to be grateful that they are being  paid national living wage and not to expect anymore.

Indeed there is a danger that the  national living wage will increase the gap between the rich and the poor with the latter being conned into believing that they are being treated fairly and that what they are receiving is a "Natural" rather than National living wage . and the verse of the Anglican Hymn All Things Bright and Beautiful .

 The rich man in his castle,
The poor man at his gate,
God made them high and lowly,
And ordered their estate.

still rings true and they should be happy with their lot and not seek anymore than their allotted.


1 comment:

  1. Illegal Immigrants/asylum seekers/refugees get paid the national minimum wage (NMW). This is disgusting and wrong. The above people should group of people should get paid below the NMW. This is because of corruption between HMRC and local government and companies.