Chancellor of the Exchequer, George Osborne, calls for rise in minimum wage

Watford Observer: George Osborne at the opening of Morrisons, Watford, in December. George Osborne at the opening of Morrisons, Watford, in December.

The Chancellor George Osborne has called for a big rise in the minimum wage to encourage people into work and compensate those on low-incomes for the economic crisis.

He said increasing wages will “make sure that we have a recovery for all and that work pays”.

But Mr Osborne’s support for higher wages has drawn warnings from business groups who say that increasing employers’ costs could result in job losses and throw the economic recovery into reverse.

The current minimum wage rate is £6.31 an hour but experts at the Treasury have speculated that could rise to more than £7.

 

 

 

 

 

 

 

 

 

 

Comments (13)

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7:28am Tue 21 Jan 14

Cuetip says...

When the Chancellor talks about a 'big rise' in the minimum wage it seems like another publicity grabbing soundbite to buy the vote and appear he knows what it is like to live on £11,000 a year. Please remember what's big to someone is peanuts to someone else.

Is he aware that apart from the abusive use of zero hour contracts and employees are increasingly being sacked days before they have completed 6 months? This is creating a social aparthied instead of the political philosophy Disraeli spoke about over a century ago - creating 'one nation' as a solution to worsening divisions in society.

There is new slogan out there ' everyone has a right to a job contract if they can do it cheaper than you' as the job market is open to every Tom , Leslie and Sheila hence the dash for outsourcing.

Typical rental values in Watford are around £9,000 per annum, add on your fixed living costs eg transport, heating, water rates, and you will be eating cardboard. Forget insurance that's a luxury.

That leaves Sunday lunch as 'bread and pull it' .
When the Chancellor talks about a 'big rise' in the minimum wage it seems like another publicity grabbing soundbite to buy the vote and appear he knows what it is like to live on £11,000 a year. Please remember what's big to someone is peanuts to someone else. Is he aware that apart from the abusive use of zero hour contracts and employees are increasingly being sacked days before they have completed 6 months? This is creating a social aparthied instead of the political philosophy Disraeli spoke about over a century ago - creating 'one nation' as a solution to worsening divisions in society. There is new slogan out there ' everyone has a right to a job contract if they can do it cheaper than you' as the job market is open to every Tom , Leslie and Sheila hence the dash for outsourcing. Typical rental values in Watford are around £9,000 per annum, add on your fixed living costs eg transport, heating, water rates, and you will be eating cardboard. Forget insurance that's a luxury. That leaves Sunday lunch as 'bread and pull it' . Cuetip

7:38am Tue 21 Jan 14

sielay says...

Rise of minimal wage is thing that comunistic politicans repeat all thr time in Easter Europe. Who knows basics of economics knows that is more killer thansupport for the economy. There is good quote for it (believe it was Churchil) "if you give people money for not working, don't be surprised they dpn't look for a job".
Rise of minimal wage is thing that comunistic politicans repeat all thr time in Easter Europe. Who knows basics of economics knows that is more killer thansupport for the economy. There is good quote for it (believe it was Churchil) "if you give people money for not working, don't be surprised they dpn't look for a job". sielay

8:43am Tue 21 Jan 14

Cuetip says...

sielay wrote:
Rise of minimal wage is thing that comunistic politicans repeat all thr time in Easter Europe. Who knows basics of economics knows that is more killer thansupport for the economy. There is good quote for it (believe it was Churchil) "if you give people money for not working, don't be surprised they dpn't look for a job".
Raising the wage to catch up with inflation invariably polls well, because most perceive it as a matter of justice.

A higher minimum wage would do nothing for the unemployed.

Rightwing economists argue that falling real wages are the foundation stone of the economy's competitiveness. The big danger with depressing wages like a race to the bottom is that a "low wage economy" where they make T shirts etc, refers to the fact wages are lower than in a developed, capital intensive nation where there is real investment in building a high quality workforce.

The ONS has looked back at the last 10 years and found real wages, which are based on a survey of pay packets adjusted for inflation, have fallen so steeply in the last three years that they are back to levels last seen in 2002-03.

The UK is floundering with a low-wage economy that simply consumes enough to maintain the UK's current productive capacity. That means unemployment remaining at '2.5 million' people and the long-term unemployed being out of work for yet longer.
[quote][p][bold]sielay[/bold] wrote: Rise of minimal wage is thing that comunistic politicans repeat all thr time in Easter Europe. Who knows basics of economics knows that is more killer thansupport for the economy. There is good quote for it (believe it was Churchil) "if you give people money for not working, don't be surprised they dpn't look for a job".[/p][/quote]Raising the wage to catch up with inflation invariably polls well, because most perceive it as a matter of justice. A higher minimum wage would do nothing for the unemployed. Rightwing economists argue that falling real wages are the foundation stone of the economy's competitiveness. The big danger with depressing wages like a race to the bottom is that a "low wage economy" where they make T shirts etc, refers to the fact wages are lower than in a developed, capital intensive nation where there is real investment in building a high quality workforce. The ONS has looked back at the last 10 years and found real wages, which are based on a survey of pay packets adjusted for inflation, have fallen so steeply in the last three years that they are back to levels last seen in 2002-03. The UK is floundering with a low-wage economy that simply consumes enough to maintain the UK's current productive capacity. That means unemployment remaining at '2.5 million' people and the long-term unemployed being out of work for yet longer. Cuetip

9:00am Tue 21 Jan 14

dontknowynot says...

A rise is needed.
There also needs to be a increase in workers rights, starting with a reversal of the insane changes to access to tribunals and changes to the zero hours culture, rolling back the use of agency workers, and an end to the divisive abuse of migrant workers, oh and the end of exploiting self employed status to pay below minimum wage
A rise is needed. There also needs to be a increase in workers rights, starting with a reversal of the insane changes to access to tribunals and changes to the zero hours culture, rolling back the use of agency workers, and an end to the divisive abuse of migrant workers, oh and the end of exploiting self employed status to pay below minimum wage dontknowynot

9:07am Tue 21 Jan 14

dontknowynot says...

looking at the min wage rates they are an actual disgrace, the £6.31 is only for over 21 below that it is £5.03 for over 18 £3.72 for under 18 £2.68 for apprenticeship
looking at the min wage rates they are an actual disgrace, the £6.31 is only for over 21 below that it is £5.03 for over 18 £3.72 for under 18 £2.68 for apprenticeship dontknowynot

9:34am Tue 21 Jan 14

sparky49 says...

This is just another tory con. It is aimed at the first time voters as they know the rest are likely to abstain or vote Labour, they know this.
If they get back in they will claw it back and more over 5 years.
YOU HAVE BEEN WARNED
This is just another tory con. It is aimed at the first time voters as they know the rest are likely to abstain or vote Labour, they know this. If they get back in they will claw it back and more over 5 years. YOU HAVE BEEN WARNED sparky49

9:43am Tue 21 Jan 14

jasonwatford says...

If you raise this to £7 jobs will be lost and business refuse to pay more money for what they see as trival items such a cleaning etc. Where you have 2 cleaners in a building they will not pay the extra so they will cut down one cleaner and then continue to moan standards are not as good. Also if business were to pay their bills on time we would all be in a better place. Big business determine when they pay their bills to small business and now 90 -120 days is the normal. Just plain wrong to a small business
If you raise this to £7 jobs will be lost and business refuse to pay more money for what they see as trival items such a cleaning etc. Where you have 2 cleaners in a building they will not pay the extra so they will cut down one cleaner and then continue to moan standards are not as good. Also if business were to pay their bills on time we would all be in a better place. Big business determine when they pay their bills to small business and now 90 -120 days is the normal. Just plain wrong to a small business jasonwatford

11:52am Tue 21 Jan 14

Robert.M says...

Stop handing out benefits to immigrants, only allow child benefit for one child, raise minimum wage to give people an incentive to get to work
Stop handing out benefits to immigrants, only allow child benefit for one child, raise minimum wage to give people an incentive to get to work Robert.M

11:57am Tue 21 Jan 14

dontknowynot says...

Robert.M wrote:
Stop handing out benefits to immigrants, only allow child benefit for one child, raise minimum wage to give people an incentive to get to work
yer right chairman bob and his one child policy.

On a plus note the poll is over 80% in favor of raising the min wage, this is the min wage the Labour Gov brought in against stiff opposition from the Tories, the minimum wage now supported by the tory party libdem and even UKIP.

Seems that they all now think Labour were right to introduce it
[quote][p][bold]Robert.M[/bold] wrote: Stop handing out benefits to immigrants, only allow child benefit for one child, raise minimum wage to give people an incentive to get to work[/p][/quote]yer right chairman bob and his one child policy. On a plus note the poll is over 80% in favor of raising the min wage, this is the min wage the Labour Gov brought in against stiff opposition from the Tories, the minimum wage now supported by the tory party libdem and even UKIP. Seems that they all now think Labour were right to introduce it dontknowynot

3:31pm Tue 21 Jan 14

LSC says...

All I know is, when I was last made redundant there were no jobs going that required my skills. Because I'm fairly fit and not stupid, the idea of not working simply wasn't an option to me, so I took a job, any job, at minimum wage.
But if my wife hadn't had a decently paying job, we would have lost our house. I didn't look deeply into it, but I'm told if I had gone on benefits we would have been more secure, if not better off.
In this sort of area, unless you are willing to live 10 to a house, the current minimum wage simply doesn't cover the outgoings.
All I know is, when I was last made redundant there were no jobs going that required my skills. Because I'm fairly fit and not stupid, the idea of not working simply wasn't an option to me, so I took a job, any job, at minimum wage. But if my wife hadn't had a decently paying job, we would have lost our house. I didn't look deeply into it, but I'm told if I had gone on benefits we would have been more secure, if not better off. In this sort of area, unless you are willing to live 10 to a house, the current minimum wage simply doesn't cover the outgoings. LSC

4:06pm Tue 21 Jan 14

dontknowynot says...

LSC wrote:
All I know is, when I was last made redundant there were no jobs going that required my skills. Because I'm fairly fit and not stupid, the idea of not working simply wasn't an option to me, so I took a job, any job, at minimum wage.
But if my wife hadn't had a decently paying job, we would have lost our house. I didn't look deeply into it, but I'm told if I had gone on benefits we would have been more secure, if not better off.
In this sort of area, unless you are willing to live 10 to a house, the current minimum wage simply doesn't cover the outgoings.
the secure thing comes from getting housing benefit in the form of paying for your mortgage interest, this is something Mort companies like because they get/got a payment direct from DWP for part of the mortgage.
As to being better of this is a bit of a fairy story really as on low pay the tax credit scheme that is in work benefits are more generous than out of work benefits.
personally I think that wages should be much higher thit is those in work ought not to have their employees costs subsidesed
[quote][p][bold]LSC[/bold] wrote: All I know is, when I was last made redundant there were no jobs going that required my skills. Because I'm fairly fit and not stupid, the idea of not working simply wasn't an option to me, so I took a job, any job, at minimum wage. But if my wife hadn't had a decently paying job, we would have lost our house. I didn't look deeply into it, but I'm told if I had gone on benefits we would have been more secure, if not better off. In this sort of area, unless you are willing to live 10 to a house, the current minimum wage simply doesn't cover the outgoings.[/p][/quote]the secure thing comes from getting housing benefit in the form of paying for your mortgage interest, this is something Mort companies like because they get/got a payment direct from DWP for part of the mortgage. As to being better of this is a bit of a fairy story really as on low pay the tax credit scheme that is in work benefits are more generous than out of work benefits. personally I think that wages should be much higher thit is those in work ought not to have their employees costs subsidesed dontknowynot

4:34pm Tue 21 Jan 14

LSC says...

dontknowynot wrote:
LSC wrote:
All I know is, when I was last made redundant there were no jobs going that required my skills. Because I'm fairly fit and not stupid, the idea of not working simply wasn't an option to me, so I took a job, any job, at minimum wage.
But if my wife hadn't had a decently paying job, we would have lost our house. I didn't look deeply into it, but I'm told if I had gone on benefits we would have been more secure, if not better off.
In this sort of area, unless you are willing to live 10 to a house, the current minimum wage simply doesn't cover the outgoings.
the secure thing comes from getting housing benefit in the form of paying for your mortgage interest, this is something Mort companies like because they get/got a payment direct from DWP for part of the mortgage.
As to being better of this is a bit of a fairy story really as on low pay the tax credit scheme that is in work benefits are more generous than out of work benefits.
personally I think that wages should be much higher thit is those in work ought not to have their employees costs subsidesed
You could well be right about the in-work benefits, I might well have been due some. But we never looked into it, we took the other path. Time spent not actually working was spent looking for a better paid job.

We ditched Sky Sports and Movies, we didn't eat out and a bottle of wine was christmas and birthdays only. We downsized both our cars for cheaper tax and insurance. I gave up my mobile completely, she went to pay as you go.

We made it, and we didn't take a penny in benefits that we weren't already getting, like marriage allowance and lower tax for low pay etc.

But we only JUST made it. Eventually I found a better paying job and all is good. But if we had both been on minimum wage?
Not a chance.
[quote][p][bold]dontknowynot[/bold] wrote: [quote][p][bold]LSC[/bold] wrote: All I know is, when I was last made redundant there were no jobs going that required my skills. Because I'm fairly fit and not stupid, the idea of not working simply wasn't an option to me, so I took a job, any job, at minimum wage. But if my wife hadn't had a decently paying job, we would have lost our house. I didn't look deeply into it, but I'm told if I had gone on benefits we would have been more secure, if not better off. In this sort of area, unless you are willing to live 10 to a house, the current minimum wage simply doesn't cover the outgoings.[/p][/quote]the secure thing comes from getting housing benefit in the form of paying for your mortgage interest, this is something Mort companies like because they get/got a payment direct from DWP for part of the mortgage. As to being better of this is a bit of a fairy story really as on low pay the tax credit scheme that is in work benefits are more generous than out of work benefits. personally I think that wages should be much higher thit is those in work ought not to have their employees costs subsidesed[/p][/quote]You could well be right about the in-work benefits, I might well have been due some. But we never looked into it, we took the other path. Time spent not actually working was spent looking for a better paid job. We ditched Sky Sports and Movies, we didn't eat out and a bottle of wine was christmas and birthdays only. We downsized both our cars for cheaper tax and insurance. I gave up my mobile completely, she went to pay as you go. We made it, and we didn't take a penny in benefits that we weren't already getting, like marriage allowance and lower tax for low pay etc. But we only JUST made it. Eventually I found a better paying job and all is good. But if we had both been on minimum wage? Not a chance. LSC

6:56am Wed 22 Jan 14

tigeran says...

sparky49 wrote:
This is just another tory con. It is aimed at the first time voters as they know the rest are likely to abstain or vote Labour, they know this.
If they get back in they will claw it back and more over 5 years.
YOU HAVE BEEN WARNED
Oh yeah, and your socialist idiots did so much better didn't they?! Still, anything for a free ride eh?
[quote][p][bold]sparky49[/bold] wrote: This is just another tory con. It is aimed at the first time voters as they know the rest are likely to abstain or vote Labour, they know this. If they get back in they will claw it back and more over 5 years. YOU HAVE BEEN WARNED[/p][/quote]Oh yeah, and your socialist idiots did so much better didn't they?! Still, anything for a free ride eh? tigeran

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