what impact the living wage will have?

[Sunny67]

I could well be missing something here so I'm happy to have it explained to me
Living wage increase is great but what will happen to those on or around that figure already?
Let's say a person at a supermarket checkout gets moved to £9 per hour but a supervisor is on £9.50 an hour, more responsibility etc, then surely the supervisor will want an increase too. So if before the LW the difference between the two was £1.50 an hour then the supervisor would expect to have a rise of that amount. Same to be said for a huge amount of of businesses
If so then the cost of living will shoot up

Do we really have to call it the Living Wage just because Gideon says so?

It's the Minimum Wage.

Especially as I doubt you could actually live properly on £7.20 an hour (£9 in what, four years, would basically work out to be the same amount once you add in inflation.)

The thing is in principle minimum wage is not a bad idea. Obviously it is there to protect people from being (too) exploited and also don't forget there are a lot of people who don't need a living wage i.e. younger people living at home, people who are semi retired and want to top up their income or couples where it is a second income.

However what the issue is I feel is that employers are not encouraged to move people up and along, give them more training and more responsibility and increase their wages. In theory anyone starting at a company on minimum wage should not be on minimum wage in 10 years time as they would be more experienced and therefore worthy of a higher salary and yet this doesn't seem to happen. People get stuck in a minimum wage role but there is seemingly no way for them to work there way up and out of it which to me doesn't seem right.

I would like to see some sort of regulation that means that after X many years companies then have to pay their workers above minimum wage.

We've always paid a living wage regardless of our staffs age. We will continue to do so.

The slight reduction in corporation tax will save us about 3k pa. We employ over a 100 people so it's not really going to help NMW employees to increase wages to NLW.

This will certainly help the under 25s get into work. At the expense of older people. Someone on another thread said her son was sacked when he turned 18, to avoid the minimum wage. This will be the same.

Well taking it at face value it seems like an excellent idea. Which yes it. To give credit where it is duty, . A fair days work for. Fair days days pay, should mean exactly that. Not a pittence you can top with tax credits, to help meet the cost of living,and me and the Tories are far from friends. But this policy is not without it's pitfalls. Whilst wages goes up so will the cost of living. Nothing surer than that, and I fear we will see a vast rise in unemployment as employers will not be able to afford to pay their staff.
Now IDS won't be cheering about that will he, I highly doubt

Boost in youth employment?

Less workers being employed so more pressure on workers' productivity, unpaid overtime and more unemployment?

Or will the decrease in corporate tax pay for this rise and people on under 7.20 will become better off (or not if they claim tax credits as they will have decreased at a faster rate)?

Sorry don't really understand it, just pondering!!

DH works for one of the major supermarkets at a few pence above NMW. Overall this will benefit us as we arent in receipt of tax credits.

They have NO idea I have no money until tomorrow, we are having rice pudding and crisps for tea, as I can't afford nothing else!

I currently earn £7.20 an hour so I'm very curious as to what will happen in April - I can't see my employers increasing my wage by the same percentage so I will essentially be back on NMW rates 11 years after first starting out on it, despite 11 years of work experience and a 20k student loan in the interim...