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Does anyone actually believe that employers will raise wages if tax credits are cut?

(86 Posts)
ssd Wed 24-Jun-15 09:16:06

We get tax credits, I earn £6.50 an hour, that's minimum wage.

I dont for a single moment think my employer will raise my wage when my tax credits are cut.

AIBU to ask, does anyone, apart from this government, actually believe wages will go up when TC are cut?

Maybe I'm being naive, and years of being in a workplace have left me to think that's the last thing that will happen.

AIBU?

JennyOnTheBlocks Wed 24-Jun-15 09:18:54

yanbu

instead of higher wages, there will be a huge pointy finger of blame, pointing at us and laughing for not being 'good enough' 'skilled enough' and 'clever enough' to earn lots of money

but i have a feeling they'll have a revolution on their hands

<hopeful>

meglet Wed 24-Jun-15 09:20:13

of course they won't.

EssexMummy123 Wed 24-Jun-15 09:21:06

Have you actually been informed that your tax credits are being cut?

expatinscotland Wed 24-Jun-15 09:22:18

No. But the finger will be pointed at all those on low wages, they should all have 'done better' 'retrain' they made bad choices so therefore deserve to be poor.

expatinscotland Wed 24-Jun-15 09:22:49

And the HB bill will go up.

Maliceaforethought Wed 24-Jun-15 09:23:58

Message withdrawn at poster's request.

AnyoneForTennis Wed 24-Jun-15 09:24:28

why would employers do this when maybe not many people who workfor them actually even claim tax credits to start with?

meglet Wed 24-Jun-15 09:25:09

they cut 10% off childcare tax credits last time. I lost £90 month I fully expect WTC to be reduced too.

museumum Wed 24-Jun-15 09:25:41

I will be campaigning for the minimum wage to increase. I think that a higher min wage instead of tax credits is fairer and more transparent.
IF a higher NMW makes all SMEs go bankrupt then the govt can bring in tax breaks for SMEs. The govt should NOT be subsidising multinational companies with tax credits and a NMW that no don't can live on!

Enidblytonrules Wed 24-Jun-15 09:27:18

I suggested via a Daily Mail article the other day that employers should be responsible for the payment of tax credits to their employees - might encourage them to offer more hours/ proper contracts (not zero hours) and a living wage rather than a minimum wage.

It is only in the last 10-15 years that people have needed tax credits - when my dcs were young most families could earn enough to support themselves but rising housing costs and lowering of wages means this is no longer the case

LurkingHusband Wed 24-Jun-15 09:27:27

What will probably happen (or rather, if I wanted the project to get the right PR, what I would do) is that Gideon will make a few old-boy phonecalls to a few of the chaps who happen to be on the boards of some Tory-friendly businesses. As he's an efficiency freak, he'd probably do it by conference call:

GO: "Hello chaps, so pleased you could make the call. We rather need to sell cutting tax credits to the proles. Any chance you could have a play around with your lowest wages to make it look like you're giving people a bump ..."
Toby: "Well ..."
Dominic: "Hmmm ..."
Tarquin: "Ummmm ..."
GO: "Don't forget with Workfare you get to not pay some workers ..."
All: doubtful "...but ..."
GO: "...Of course next years honours ..."
All: "We'll do it."
GO: "Splendid. Oh, and Messrs Dacre and Mudoch ... you will make sure that all the news that week will be from the boys firms ? You know, showing how it's all working tickety-boo ? Manage to generate enough buzz to drown out any incorrect news ?"
Dacre & Murdoch: "Yes George".

meglet Wed 24-Jun-15 09:29:19

grin

JennyOnTheBlocks Wed 24-Jun-15 09:30:53

Enid

before TCs we had FIS - Family Income Suppliment

still a top up for those on less wages than was deemed liveable

purits Wed 24-Jun-15 09:33:36

I suggested via a Daily Mail article the other day that employers should be responsible for the payment of tax credits to their employees - might encourage them to offer more hours/ proper contracts (not zero hours) and a living wage rather than a minimum wage.

That's so funny. I was about to post "do you remember when employers were responsible for paying tax credits through the payroll system?" Employers could see for themselves that if the company didn't pay enough wages then the Government would pick up the shortfall. Guess what happened next?grin
Someone came to their senses and killed off that scheme.

Enidblytonrules Wed 24-Jun-15 09:39:16

Yes Jenny, I remember FIS - my dad tried to claim it in 1975 for 3 dcs and SAHM - dad earned under £20 per week - we missed the cut off point by 3p - thus lost FSM, free prescriptions etc - it was a far lower benefit targeted at a minority rather than the majority as tax credits seems to be targeted.

My dps claimed a small amount of rent/rates rebate (housing benefit) which stopped when I, as the eldest child, reached 18 years because it was expected that I would make up the difference from my wages.

Enidblytonrules Wed 24-Jun-15 09:41:53

I did suggest purist that not only did employers pay tax credits but pay them from their own funds! They may then realise just how low wages have fallen. Dream on Enid!!

ssd Wed 24-Jun-15 09:43:20

Lurking, that's exactly how it'll go...

JennyOnTheBlocks Wed 24-Jun-15 09:44:54

^ it was a far lower benefit targeted at a minority rather than the majority as tax credits seems to be targeted^

i'm not sure TC is targetted at anyone other than those who aren't paid enough.
If that's the majority, then that's where the government SHOULD step in and make sure (and i hate myself for using this phrase, but can't think of any better) working people are working for real wages. Or give them TCs as a top up.

After all, those with the highest incomes will be putting into the collective coffers won't they, so there should be a sense of community if we're all in this together.

Oh wait...

purits Wed 24-Jun-15 09:49:09

not only did employers pay tax credits but pay them from their own funds!

Great idea!hmm
No one would employ people needing tax credits.

WhattodowithMum Wed 24-Jun-15 09:50:03

YANBU

I think if they announce cuts to tax credits they should be announcing a rise in the minimum wage at the same time.

prorsum Wed 24-Jun-15 09:54:01

Not a chance.

misstiredbuthappy Wed 24-Jun-15 09:55:25

Does everyone honestly think they will scrap tax credits ? When will we know ? I practically live of my tax credits thanks to my crap wages.

mistymeanour Wed 24-Jun-15 09:58:29

Child tax credit and working tax credit has allowed employers to depress wages. It has meant that a lot of people who couldn't really make a living from self employment and "hobby" style businesses otherwise have been able to do this and thus stay off unemployment figures whilst not really running viable businesses (if not for CTC and WTC subsidy). If you register as self employed you also avoid the bedroom tax and as a new EU arrival get access to benefits immediately. If you have a very low income/no profit on your tax return then the CTC, WTC, HB etc you can claim adds up to around the same as JSA/income support and you get no hassle from the DWP. Where I live most families live this way doing term time TA work, yoga teacher, artist, Personal trainer and life coaches etc.

Most families with young children get a least some CTC so it locks us all into tacitly supporting it and being clients of the state - I think Labour thought it would mean they would never be voted out (I know many people who vote Labour solely because of CTC and WTC). I don't know how most families will manage if it is cut as it seen now as part of the wage really, most people I know would really struggle to eat and pay their mortgage/rent without it.

UterusUterusGhali Wed 24-Jun-15 10:04:49

Yeah right.

And they're going to make nurse's starting salary £35k too so we don't lose thousands when they "send 'em back".

Oh, wait...

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