National Minimum Wage Increase

[good96]

With the NMW increase from April 2025 rising to £12.21 - for someone who works 40 hours a week - that is £25,400!

Can see so many businesses struggling/restructuring/redundancies after this!

And, what do you think will happen then? I accept that this is a debate, but the narrative that all business owners are dreadful fat cats or are somehow stupid for not making a gazillion pounds per year it’s not helpful. It is helpful to understand where the pinch points will be in order to prevent job losses needlessly.We’ve even had nursery workers referred to as ‘plebs’. How are those workers meant to feel? If supposedly supportive posters on here do not value their work?

No one is disagreeing with the fact that everyone deserves a good quality of life, but there are other ways in which this can be achieved and placing the onus on all companies - especially small businesses who have done their best but had a torrid time with covid, the insane cost of utilities, unaffordable leases etc lead them with only one option and that is to close

Personally, I’d like to see Keir Starmer Tackle the global corporations who are exploitative and do not pay their fair share of taxes having benefited from operating in this country. These are the firms that deserve criticism for their working practices and treatment of their workforce not the owners of the local village store or farm who are providing a much-needed service particularly in the more rural locations.

Thank you for acknowledging. As a business owner I find it really really hard. I’d love to be able to pay our staff more. They literally do a shitty job! But in order to be a viable business there are limits.

it’s a bit like the statistic that in entering a supermarket 90% of people say they will buy the free range option but if you check their trolley on the way out only 50% have bought it. (Can’t remember the exact figures but the gist is right)

On the surface it seems good .

however, I can see how it will further affect me at work

I work as a TA ( I am degree educated and have 15 years experience, but it isn’t a prerequisite for the job) and so am very close to minimum wage.

over the last two years, we have lost nearly half of our support staff. They have done this by simply not replacing staff that leave . This means that teachers have more pressure on them, we have more pressure covering extra playtimes and other jobs , such as covering for lunch time staff that we have less of, or even cleaners/ office staff lunches. often spread over two or three classes and so children who need extra support simply don’t get it, or get limited.

this isn’t because school doesn’t want/need us , this is a lack of funding/ prioritising other things

my worry is that this will mean that the next ta that leaves also won’t be replaced, stretching us even thinner.

That isn’t to say we don’t earn/ deserve the money- I think we earn it twice over most days !

I can also see how it would push up basic food costs further , causing further inflation, and making the government raise interest again- which personally would affect my mortgage

so I do wonder who they are trying to appeal to

The problems are high rental costs and the increasing north south divide. Most of the investment goes to the south east and big urban centres. Meanwhile smaller town are left to rot. Too many folk use house prices to fund their retirement. It’s a vicious circle.
One thing’s for sure, whatever the government does, people with vested interests will moan. Loudly.

@Persephonisima

In my view, the answer is to create more wealth overall. How? Drive down the cost of energy (with a nuclear power building drive), and of land/rent (relax planning constraints).

Those two things would massively reduce prices across the economy, without anyone taking a pay cut. aka, our money goes further, aka we all get richer.

The boost to economic activity would raise the tax take (keeping tax rates stable), improving public services.

Almost everyone would benefit. The losers would be people who own property that they plan to sell (unless they also own a lot of shares, in which case they might gain overall), and people who like the green belt (but this could be managed sensibly: not a free for all).

Otherwise we are just shuffling the pain between different parties. We need to create more wealth to start with. There are a few big levers and those are two of the best.

Actually having a think about it, I would imagine that it pushes quite a few people out of the bracket for tax credits/ universal credit/ free school meal (especially if you are both working) so maybe it’s simply passing the buck then the can announce they have saved money on benefits - when actually families will just be struggling more

That comment tells me more about how we value the people who care for our youngest and eldest-ie not at all. These roles are highly skilled yet we don’t even think they deserve 25k a year? No wonder the care and nursery sector struggle to recruit people.

There are very few companies who don't have employees on universal credit.

@Blanketyre I don't get UC because I'm single so no, no handouts
I also haven't got basic qualifications, I have 11 a*-c GCSEs, 4 A/S levels, a national diploma and a BA hons degree

Min wage due to circumstances and health and a bad choice in degree

Just because I'm on min wage doesn't mean I'm thick, unskilled or drifted

It's really going to hit my husbands business. He will have to probably not recruit the staff he needs as the margins just won't be there on the products they make. So people will lose out on jobs.

He manufactures in the uk which is already very expensive to do compared to china but far better environmentally but the hikes in minimum wage are crippling to uk business.

It's so short sighted as the cost of living and prices will just rise accordingly as people will have to increase all their costs.

Talking to other people who work 16 hours a week and won't / can't do any more hours because their benefits will then be cut significantly, maybe it's the benefit system that needs an over haul too ? ( disclaimer, this is only from general conversations with people , I don't know enough about the rules myself or how it works to really make any meaningful comments on how people live)
A lot of the problems seem to stem from high rents in the private sector , not enough affordable rents or social housing for people to live comfortably on the wages they earn.

@Changingagang that's what I said.
Many more won't see much pay rise at all because the treasury will get in in tax and ni.

Raising the thresholds would have made a real difference.
In terms of jobs I thought public body's like education, school were not going to be hit with this ni rise?

Is also imagine it means less pay rises for private sector workers.

@the80sweregreat yes I've heard that also re benefits but the people talking about it could work more hours.

So people should be kept on crap wages to prop up your husband’s business. Could he not take a pay cut?

Yes, I've heard of a few people who have been offered more hours ( ie , full time work ) but can't see the benefit because they would lose out too much. Most people wouldn't ( to be fair ) but surely of these rules were changed that might help ? Although I'm not sure how it would work in reality. The whole system seems wrong.

That comment tells me more about how we value the people who care for our youngest and eldest-ie not at all. These roles are highly skilled yet we don’t even think they deserve 25k a year? No wonder the care and nursery sector struggle to recruit people.

I think they deserve it, but nurseries are stuck.

Politicians announce more "free" hours, the funding isn't enough, nurseries are specifically forbidden from charging top up fees (I know some still do), and the politician still gets to brag about how wonderful they are for bringing in all these free hours.
These nurseries will now have to pay higher wages, plus more employer NI, which is fine. But I bet the funding they get for the free hours doesn't increase by enough to cover this. So the price they charge for the non-funded hours will have to go up by a much larger % to compensate, and some parents may then reduce the hours to just what's funded. But nurseries can't survive unless they get income from non-funded hours. They also can't reduce staff costs because of course they must stay within ratio.

I'm not against the increase in NMW. I've always been pro these hours being funded properly, and I worry the situation will now get even worse.

It’s like the country doesn’t use the talent that it has properly. My oldest son has a first class degree in CS but is struggling to find anything, even retail work. I’m sure that if we lived nearer London he’d have more chance. He’s not alone either. He’s doing voluntary work just to get out and about.

The main difference too is that people could live / survive buy a place on very normal wages years ago , but this is an impossibility these date for so many on earnings even above the minimum wage. I feel so sorry for today's young people who do work hard and can't see any kind of real future.

So why do people want job contracts to be a minimum of 16 hours? is that when they can maximise their benefits? In which case I've got zero sympathy.

Has anyone spoken about the implications for higher inflation, interest rates and unemployment?

And this is from a government that was promising growth so it could pay for the public sector improvements. Not sure where they think that will come from if they hammer businesses (NI changes, and corporate tax too will of course hammer them).

With NI and NMW increasing, businesses are going to have to increase the cost of items/products they sell. Businesses don’t magically make money, they make it from customers and the consumer is all of us.

God giveth and God taketh away.
slow clap

Communists out in force today I see 😂

@Persephonisima
so why doesnt he move to get a better job? That's what most graduates i know do, even many that live in high employment areas have to. sorry know this is a bit off thread

Maybe people don't want to move away from family? I did when I was younger and so has my eldest, but it's not for everyone.
It seems to be the default answer to everything , when for many it's just not feasible to do this.

But people can't expect opportunity to come to them. If they limit their options they limit their earning potential. That's not for their local businesses - or indeed the taxpayer - to rectify. It's the result of their own choices.

Hmm won't this just mean people pay more in tax/n.i and those on uc receive less?
Also people receiving transitional protectionon uc? Potentially won't be better off at all.
Just seems to be for the benefit of the government
Also didn't they also nmw would be at the same rate regardless of age? So won't it have a knock on effect on apprenticeships and nurseries etc
The nursery funding doesn't cover actual costs as it is so how will they cover a nmw increase?