To think raising NMW is a good thing

People are not against the increase to the nmw because they don't want people to earn more money. They are against an increase to the nmw because of the other problems it will cause. It is very short sighted not to consider the wider implications.

Why are people so against the lowest paid getting a decent wage? Do you think they should look after your kids/elderly parents/serve you in shops/cafes etc for shit wages?

It will reduce employment opportunities again and put costs up. It will also reduce the differential again between more skilled roles and entry level jobs leading to discontent and strikes. Typical Labour times really.

And we as individuals have shares in our pension. Or in our personal investments.

I couldn't let this one go, sorry.
Are you actually this stupid? The vast majority of people in the UK are employed by small businesses. The only shareholders will be the owners, and believe me, it is unlikely there will be millions of profit.
How silly you sound. Listen to yourself.

And most tax evasion is by small businesses or self employed tradesmen with cash for jobs stuff.

Thank you for this post.

I despair at the short sightedness and envy you see on MN sometimes. People treat "business" as a homogenous evil that exploits the masses, rather than the means by which the country keeps running. A huge percentage of the private sector is small businesses, operating locally.

the best is definitely not the cheapest is it?

Because if the minimum wage keeps going up, having more skills won't earn you any extra money! Use your brain!

Agree with the points about the impact to smaller businesses. This will also impact larger firms and corporates. Many are already reducing the graduate and trainee roles on offer, and focusing on automation and offshoring to cheaper locations. I don't think today's news is going to encourage any of them to slow that down or reconsider their strategy.

I really worry about the downstream impact of this to apprentices and new graduates, and the long term consequences to NMW employees. When labour becomes increasingly expensive, big businesses tend to look for ways to reduce that cost. AI and automation can be always on, does not take sick time, holiday time or need wage rises.

I agree. The difference between NMW jobs and their managers will be reduced (and I’ve seen this happen in real life).

@PomandersandRedRibbon
And many are doing jobs that require a degree yet are being paid just above NMW whilst being expected to work using high level skills and be flexible to get the work done even if it takes them over their contracted hours. The gap between NMW and what they earn will be decreasing all the time yet the difference in work won’t.

Great so all the businesses that are just about surviving at the moment and can't afford to pay the increased NMW go out of business. What happens to the employees then?

Think about the nmw this way. If someone wants to voluntarily work for under NMW they cannot. Even if they agree and the business agrees.

@TheZingyFish

Many graduatess can't get work and work in small business there will be no jobs

MN
“I am skint on 100k a year”
also MN
”we shouldn’t put minimum wage up, it’s high enough”

I think the problem lies in that a significant rise in the NMW will not be replicated in other jobs just above minimum wage. Therefore, more skilled jobs, even graduate jobs, will be being paid only just above minimum wage for significantly more responsibility and expectation. This is the unfairness and will impact productivity when people feel they are expected to do significantly more for only a few pounds more so will start to slack off.

@GregoryFluff I agree it's so so sad. ..I've never heard such stupidity in my life and she sounds so removed from normal people lives. .
The law of unintended consequences .

I'm on the cusp I'm not far over the first threshold I got a 1.5 % pay rise .

It's eaten by tax and NI.

She's not helping me.

Small and medium business have been absolutely pummeled by the ni hike.
Their other bills have gone up as well ,utilities and water is worse than the gas and electric! Put on top other rising prices and now this they won't survive actually.

It's been to hard ,the credit crisis then cost of living ,two years of no income with COVID ...and now our government punishing them

The ni hike has already meant that less young people under 25 are being employed and this will just bring it to a halt.

If things had been different over the last 20 years perhaps it would have been a good idea but in the eccomic landscape we have been through this is catastrophic , short sighted and will cause slow burn CARNAGE. She's just been on TV saying business wants more discretion spending and this will help that ????

What she should have done is increase the thresholds were lower paid pay less tax.

It's a disgrace.

@AutumnLeavesandKnittedJumpers

Working class, in Grimsby on NMW

Of course we need small businesses. It's about community. Small tea rooms do poetry nights, let Andy's Man Club hold group there for no charge, run a little auction out of the back room that half the women over 70 on the estate go to, do Xmas raffles for local charities and instead of throwing the stale cakes in the bin, they dish them out to the homeless blokes that live in the doorways
We're losing so much after years of austerity. If the cafe on the park goes bust, then the warm space with free hot meals for those in need goes with it
Meeting places. The group for carers of disabled children goes. People have even less support. The last thing we need to lose is small business around here
We don't need another coffee chain on our nearly empty high street. And if you think I'll see any difference in my life from this hike, you're having a laugh. Not in real terms, not when everything else goes up again to pay for it

This will also affect small businesses who don't have shareholders and don't make millions in profits.

I can tell you that not all small business owners are living the high life

Companies will just stop employing people. They will also increase prices to cover additional costs so we’ll all be shafted.

I’ve worked in healthcare in various posts since I was 18 so nearly 20 years, I just happen to work in an area I’m passionate about doesn’t mean I don’t feel anger at pay and conditions

Do nurses make more in the private hospitals?