Grumpy Owl Posted November 17, 2022 Share Posted November 17, 2022 In the Chancellor's Autumn Budget Statement issued today, it was announced that the National Minimum Wage will be increasing in April 2023. Quote The National Living Wage will increase from £9.50 to £10.42 an hour in April. That is the UK's legal minimum wage for workers aged 23 or over. There are lower rates for younger workers. The minimum wage goes up in April every year, boosting the pay of about two million people. But the new rates are announced in advance to allow firms to prepare. The increase in the minimum wage for over-23s will be 9.7% to help them cope with rising prices. From: https://www.bbc.co.uk/news/uk-politics-48445674 Now on the surface, this all sounds very nice and "good", after all with the 'cost of living crisis' and everything going up in price due to inflation, those on minimum wage will think that they'll be getting more money in their pockets for their endeavours. There is always one aspect to this that is always overlooked, and the BBC article merely glosses over this: Quote Before the minimum wage was introduced, there was concern that it would cost jobs, because employers would compensate for their higher wage bill by hiring fewer people. But this didn't turn out to be the case. There's no evidence of an overall loss of jobs linked to the minimum wage, and only weak evidence of negative impacts on some groups of workers. I believe that if you look hard enough, there is plenty of evidence to suggest that ever since Labour introduced this in 1998, it has merely contributed to making things 'more expensive'. Employers soon realised that they couldn't maintain operating costs by getting fewer people to do the same jobs, but it did mean that their operating costs increased as a result. Companies that employ large numbers of staff who are usually paid the minimum wage, see their operating costs increase everytime the minimum wage rate is increased. All that happens is the price of that company's 'output', whether it be the cost of using their services, or the cost of buying the goods they manufacture/distribute, goes up, so the end consumer ends up paying more as a result. It becomes a vicious circle - people 'can't afford to buy things' so the minimum wage increases, but then eventually people still 'can't afford to buy things' because everything continues to increase in price as a result. Now I'm not saying that the minimum wage is a 'bad thing' and it shouldn't be increased, I think employees are entitled to receive a fair salary for their work, and some big companies that make huge profits could probably afford to pay their lower-skilled workers more than the bare minimum they are legally required to. 1 1 Quote Link to comment Share on other sites More sharing options...
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