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Original poster

To feel undervalued due to minimum wage increase?

63 replies

Littlebittiredoflife · 07/02/2025 08:04

When I first started this job four years ago I was earning enough in 15 hours as if I was working 16 hours at minimum wage. This meant as a family we could access the tax free childcare scheme. However for a while I've not earned enough to access that. I'm currently earning less than what the minimum wage will be from April. I'm just feeling that my time is worth less year on year given that everything else has risen in price. I'm not sure what I can do bar finding another job, but I'm lucky I like my work and they are flexible with hours. Anyone else feeling this way?

OP posts:
whosaidtha · 07/02/2025 09:02

It's not just tax free. I'm not entitled to the extra funded hours because I don't work enough- I work term time only so my average hours across the year is less than 16. That's worth around £250 a month.

Original poster
Littlebittiredoflife · 07/02/2025 09:02

Frowningprovidence · 07/02/2025 08:24

I have sympathy.

It's right that minimum wage has increased as the cost of basics have risen.

But more and more roles have been sucked into minimum wage and it is demoralising if you had done extra to get a little more and are now back being paid the legal minimum.

I find mn a bit obtuse on this.i think people often end up arguing no job is worth more than any other and we should all earn minimum wage and be grateful.

Thank you for getting it, demoralising is the word. Equally agree that nmw should increase and it is a good thing.

OP posts:
beAsensible1 · 07/02/2025 09:00

Ask for a wage increase?

Original poster
Littlebittiredoflife · 07/02/2025 09:00

mrsm43s · 07/02/2025 08:58

So work an extra hour! Either at your existing job or get another one. If you work 16 hours, you'll be paid at least 16 hours at minimum wage. Isn't that obvious?

Your gripe is basically "I only work 15 hours but I want to be paid the same amount and be entitled to the same benefits as if I worked 16 hours".

Show quote history

Well yes because these were the terms in my contract when I took this job four years ago. I wouldn't be complaining if these were the terms I'd signed up to, it's the fact that they've changed that's making me feel undervalued.

OP posts:
Original poster
Littlebittiredoflife · 07/02/2025 08:58

I imagine at 16 hours they start having to pay national insurance, so don't want to pay me for 16 hours. Someone else might have more knowledge in this area.

OP posts:
mrsm43s · 07/02/2025 08:58

Littlebittiredoflife · 07/02/2025 08:43

Yes I am currently above minimum wage. When I started I was enough above minimum wage that my 15 hours was worth 16 hours at minimum wage. Now I don't earn enough to access that. So my money doesn't go as far due both to increased cost of living and because I now have to pay full price for childcare when previously I got 20% of this back. I've never paid any tax and use to be able to access this benefit.

So work an extra hour! Either at your existing job or get another one. If you work 16 hours, you'll be paid at least 16 hours at minimum wage. Isn't that obvious?

Your gripe is basically "I only work 15 hours but I want to be paid the same amount and be entitled to the same benefits as if I worked 16 hours".

NormaleKartoffeln · 07/02/2025 08:58

Littlebittiredoflife · 07/02/2025 08:57

I suppose I feel like I'm being punished in three areas. One cost of living has increased, so everything costs more, two I can't access tax free childcare and three I'm being paid relatively less for my time than I was four years ago.

You're not being punished anymore than the rest of us!

Original poster
Littlebittiredoflife · 07/02/2025 08:57

HoskinsChoice · 07/02/2025 08:56

So why don't you just work more hours?

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They don't have more hours for me to work.

OP posts:
museumum · 07/02/2025 08:57

Why did you not address this the first year you lost your TFC and ask for either one more hour or a small pay rise?

Surely if you’re a good employee you can ask for one more hour work. It will unlock so much more for you.

Original poster
Littlebittiredoflife · 07/02/2025 08:57

I suppose I feel like I'm being punished in three areas. One cost of living has increased, so everything costs more, two I can't access tax free childcare and three I'm being paid relatively less for my time than I was four years ago.

OP posts:
HoskinsChoice · 07/02/2025 08:56

Littlebittiredoflife · 07/02/2025 08:55

Paying tax is not what makes you eligible for this. Also in a two parent family you need both parents to be working, so the tax is being paid by one of us.

Show quote history

So why don't you just work more hours?

Original poster
Littlebittiredoflife · 07/02/2025 08:55

Shrinkingrose · 07/02/2025 08:45

Yes that’s clearer, you don’t pay tax but want to get a tax benefit. You earn above min wage but don’t work enough.

as long as your wage stays at or above min wage, your employer doesn’t need to act.

Show quote history

Paying tax is not what makes you eligible for this. Also in a two parent family you need both parents to be working, so the tax is being paid by one of us.

OP posts:
Dorisbonson · 07/02/2025 08:51

Littlebittiredoflife · 07/02/2025 08:18

No, the minimum wage is going up in April. Right now I'm earning under what it will be, I hope they will raise it in April to minimum wage and I will talk to them if they don't.

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They will probably have automated payroll software which will increase it anyway.

TallulahBetty · 07/02/2025 08:49

GermanBite · 07/02/2025 08:28

Can you ask them to increase your hours to 16 per week so you can access TFC?

What is TFC?

Lovelysummerdays · 07/02/2025 08:49

I do know what you mean, I work for the council and there used to be a decent amount between grades. They’ve actually gotten rid of Grade 1 as with minimum wage increase it’d of been paid same as grade 2 and they didn’t want to demote all grade 2s to grade 1s. They do pay a living wage (this is less than a quid more an hour than min wage) but there’s no where really to go as the next grades up are just pennies more per hour until there’s a big leap to management.

Shrinkingrose · 07/02/2025 08:45

Littlebittiredoflife · 07/02/2025 08:43

Yes I am currently above minimum wage. When I started I was enough above minimum wage that my 15 hours was worth 16 hours at minimum wage. Now I don't earn enough to access that. So my money doesn't go as far due both to increased cost of living and because I now have to pay full price for childcare when previously I got 20% of this back. I've never paid any tax and use to be able to access this benefit.

Yes that’s clearer, you don’t pay tax but want to get a tax benefit. You earn above min wage but don’t work enough.

as long as your wage stays at or above min wage, your employer doesn’t need to act.

NorthernDuck · 07/02/2025 08:44

the Governments aim is to make the minimum wage 2/3 of median earnings, this means there will be increasingly more jobs that pay minimum wage as the employers can’t keep up with the increases. Jobs that historically paid above minimum wage are now paid that amount.

I would ask if you can increase your hours by 1 hour because sure enough minimum wage will go up next year and you’ll be in the same position asking for a payrise.

Lucarr · 07/02/2025 08:43

whosaidtha · 07/02/2025 08:36

I think it's the fact that they weren't minimum wage jobs a few years ago. I'm exactly the same. When I started I was a couple of £s an hour above minimum wage but with each minimum wage increase that gap is smaller and in April I will be on minimum wage. For a job that wasn't considered that 8 years ago.

Show quote history

This is the issue

Original poster
Littlebittiredoflife · 07/02/2025 08:43

Yes I am currently above minimum wage. When I started I was enough above minimum wage that my 15 hours was worth 16 hours at minimum wage. Now I don't earn enough to access that. So my money doesn't go as far due both to increased cost of living and because I now have to pay full price for childcare when previously I got 20% of this back. I've never paid any tax and use to be able to access this benefit.

OP posts:
Lucarr · 07/02/2025 08:43

BathSpider · 07/02/2025 08:24

I am confused;

Yes your employer will give you the nation minimum wage in April - it’s the law

Is your biggest gripe you don’t currently work enough hours and/or receive enough of a salary to receive in work benefits?

No - it’s that she used to earn above the NMW.

But as the NMW is increasing, the headroom between it and other lower paid roles is decreasing. Because the other roles aren’t increasing at the same rate.

it’s turning into quite the headache for the NHS agenda for change scale. NMW is catching up with Band 4/5 pay which isn’t going up at the same rate.

TartanMammy · 07/02/2025 08:41

You don't qualify for tax free childcare because you don't pay any tax. You earn under the tax threshold (£12.5k), so you can't get a tax benefit on something you've not paid out in the first place.

Your employer will legally need to increase your wage to the minimum wage in April. This probably still won't take you over the tax threshold.

Birch101 · 07/02/2025 08:41

So essentially in April your wage will go up to £12.10ph hour but to access the free childcare you need it to be £12.91
Is there no way you could work an hr extra in the week?

I personally would raise it as some people just don't understand the implications and if they/you are unable to add an additional hr into your contract or offer you and uplift I would look around to see what else could work for your family.

My friend did sat and sun work which was hard for the family but worked until she found a school admin role

Could you take on a 0hrs contract and agree with your partner/ family that you will have a consistent time your free for this?

It is demoralizing I get it, think for your long term plan what are you working towards jpb wise and put steps in to get there over the years

NormaleKartoffeln · 07/02/2025 08:40

Your employer has to pay you at least the minimum wage per worked hour, otherwise they're breaking the law.
Why does others being more valued, i.e. paid more, make you less valued?

Shrinkingrose · 07/02/2025 08:37

was earning enough in 15 hours as if I was working 16 hours at minimum wage

this indicates you’re above current min wage? You’re not being hugely clear I am afraid.

for the 15 hours you work, you need to be paid min wage, not for an additional hour you don’t.

so if you’re not at min wage for the 15 hours then it needs to go up in April.

whosaidtha · 07/02/2025 08:36

VioletSpeedwell · 07/02/2025 08:31

I don't know why people get sniffy about being paid the minimum wage. It was meant to enhance the dignity of workers but many on MN act as though it's a personal insult that (a) some people earn the same as them or (b) they are only deemed worthy of the minimum wage.

I think it's the fact that they weren't minimum wage jobs a few years ago. I'm exactly the same. When I started I was a couple of £s an hour above minimum wage but with each minimum wage increase that gap is smaller and in April I will be on minimum wage. For a job that wasn't considered that 8 years ago.