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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

I believe that the minimum wage should be enough to enable a working couple to feed and clothe a family of four and keep a roof over their heads.

279 replies

Mamarsupial · 04/11/2022 18:21

I don’t think I am BU for a moment, interested to see how many agree with me.

OP posts:
SarahAndQuack · 05/11/2022 00:25

HerReputationMadeItDifficultToProceed · 05/11/2022 00:18

I know what my Grandad was earning in 1960 when they bought their house: £15 a week. I know because many moons ago when my monthly phone bill deal was £15 a month (about 20yrs ago) he was shocked at how much it was and laughingly said "that's what I earnt a week when we bought this house!" and it ended up with a family conversation about how much various jobs had paid (memorably my Mum earnt £2 a week in her first job in a shoe shop... I was at the time a waitress on just under £3 an hour).

So £15 a week is £60 a month or £720 a year. The Bank of England inflation calculator suggests that's the equivalent of an annual wage of £12,926.35 today. Minimum wage today (if you're over 23) is £9.50 an hour, or around £18,240 PA for an average working week. So my Grandad was on minimum wage. Less than minimum wage. And they didn't have a luxurious life, I'm not saying that they did. But they had enough to have saved to buy a nice house in a nice area (while renting!) within five years of marrying. And they had holidays, only ever in the UK or occasionally Northern France, but holidays nevertheless. Fish and chips always on a Friday and enough to go to West Ham and have a few beers with his brothers on a Saturday. They always had a Sunday roast. Their quality of life was undoubtedly better than an equivalent family would have today.

I don't see how you can calculate it like that?

If my googling is accurate (!), the average house prince in 1960 was about 2.5k, so about three and a bit years' wages at £750 p/a. Today the average house prince is just under 300k. People who could earn that in 3 and a bit years are wealthy.

EnormousBulkhead · 05/11/2022 00:26

Completely agree. An employee gives their labour in return for money. That money should be sufficient for them to live a regular adult life to a reasonable standard ie to house, clothe and feed themselves and have sufficient to fund modest leisure activities. Otherwise there is no real point in working.

EnormousBulkhead · 05/11/2022 00:35

I think you should just work out how much money that would take, and advocate the government printing that amount and giving it to everyone

Lol. That's what we've been doing since 2008. That's why our productivity is through the floor. What we need now is for people to be earning more money. Not have it handed to them but earn it. And then spend it. Which then generates higher wages. Etc. We're currently in a low wage low productivity spiral and what little people do have is worth less every day now that we've entered hyper inflation.

That's the big picture. The detail is that an employee working full time should expect to be able to support themselves on the wage they bring in.

Dinoteeth · 05/11/2022 06:06

One issue we have is wages seen to have been kept artificially low. Which is a mix of benefits top ups and an abundance of people without many qualifications.

The economy supply and demand needs to adjust to fix that.

People need incentives to look for better paying jobs, what's the point in looking for a job with more hours, better rates, if all that means your more stressed and your top up benefits are cut?

Then from employers view what's the point in offering better rates if its not really going to attract more people?

The supermarkets seem to be upping their rates and attracting people from other sectors. Even although supermarkets can be antisocial hours. That in turn means other sectors will need to up their rates to attract staff back.

The more people earning full-time wages and contributions in to the system the better. Rather than people earning full-time but still receiving top-up benefits.

AntlerRose · 05/11/2022 07:07

Dinoteeth · 04/11/2022 23:37

Minimum wage should be exactly that a minimum.

Far to many employers only pay the bare minimum. People who have qualifications or years of experience should not be on minimum wage.
It really gets me that people like Nursery staff, class room assistants, carers for elderly and vulnerable are seen as minimum wage jobs.

I actually think this is a really key point. I think an unintended consequence of minimum wage is that a lot of jobs end up stuck there. I dont have an answer, but i am sure when i just started work that there were more differentials in pay for experience gained within the same role.

Tumbleweed101 · 05/11/2022 07:20

Yes, agree. And a single person should also be able to afford to live on min wage. It shouldn’t take two wages to pay the basics. I’m talking housing, utilities, food and transport. When my children leave home and I no longer get tax credits to supplement my income I’m going to struggle to pay basics as a single
person and I earn a little above min wage. I work full time already.

DIYandEatCake · 05/11/2022 07:40

I totally agree with you. The other day my kids saw a sign advertising jobs at a supermarket with the hourly rate, and said ‘wow that’s loads, I’d be rich!’ (They’re young and get £2 a week pocket money). I pointed out that the shopping we’d just bought - and we’re being pretty frugal and careful at the moment - would take them about 6 hours’ work to pay for. And that’s just food - how the heck do you pay for rent/mortgage, council tax, energy bills, other bills, insurance, transport, clothing, replacing the washing machine when it breaks down etc etc? It’s so wrong that people who work really hard in challenging jobs - carers for the elderly and ill, TAs (who often are expected to teach whole classes these days), cleaners dealing with stuff no-one else would get near - are valued so little in what they’re paid. Where‘s the incentive to work hard when you work til you’re exhausted but still can’t pay the bills? How can you enjoy your job and excel at it when you can’t afford to heat your house or ever go on holiday? The wage gap is disgusting - executives paid obscene wages while others in the company are paid a pittance. There’s so much inequality everywhere. Not everyone can work up to the top, or should, because at the end of the day we need skilled carers, shop floor staff etc etc. Of course a family should be able to support themselves if they’re working.

Nevermorethis · 05/11/2022 08:29

AntlerRose · 05/11/2022 07:07

I actually think this is a really key point. I think an unintended consequence of minimum wage is that a lot of jobs end up stuck there. I dont have an answer, but i am sure when i just started work that there were more differentials in pay for experience gained within the same role.

There may be less room for progression, but that’s not due to minimum wage. If there’s less progression I think that is because of company trends to have flatter structures and because of the trend to regard management positions as being for graduates, rather than roles people progressed into from the shop floor. The latter in particular has trapped many of those who enter work from school in lower paid roles.
People have always got trapped in low roles though prior to minimum wage. In the early 90s I had a temporary factory job whilst at uni and one the middle aged women on the factory line told me to get that education as she was earning exactly the same as she was ten years ago ( was £3 an hour I think). No minimum wage = very low paid jobs and often no annual increase in that wage.

Ineverwannabelikeyou · 05/11/2022 08:40

FortSalem86 · 04/11/2022 23:07

It is 85%.

It's still up to, not very many people get the full %

Allinadayswork80 · 05/11/2022 08:44

667TheNeighbourOfTheBeast · 04/11/2022 18:27

Absolutely agree. It’s shocking that people need to go to food banks or claim benefits even though they are working. Partly the problem is lack of affordable housing and that people have to rent privately at extortionate rates because they can’t get a council house or a mortgage

Absolutely this, totally agree.

Ineverwannabelikeyou · 05/11/2022 08:46

SarahAndQuack · 05/11/2022 00:25

I don't see how you can calculate it like that?

If my googling is accurate (!), the average house prince in 1960 was about 2.5k, so about three and a bit years' wages at £750 p/a. Today the average house prince is just under 300k. People who could earn that in 3 and a bit years are wealthy.

I think you're agreeing with her, someone on minimum wage as he was, could not afford the equivalent lifestyle he had. They could not afford to buy the same house (or any house) or go on holiday or down the pub on one low wage.

Dinoteeth · 05/11/2022 08:56

The thing about house prices back in the '60s only professionals, people who were salaried, could get a mortgage.

Tradesmen earning good money weren't entertained, as hourly paid or bonus money wasn't guaranteed income. My parents had saved 50% deposit having lived with family after they married but were shown the door, in the late '60s. Sorry your not salaried, your income isn't guaranteed, we can't give you a mortgage. They were eventually able to buy their council house the same as many of their generation, but not before spending 20 odd years renting.

Dinoteeth · 05/11/2022 08:58

What was the average income in 1960? I don't think it was anything like £750.

Nevermorethis · 05/11/2022 09:00

Mezmer · 04/11/2022 20:28

Seriously, comparing working class life last century to working class life today is insane. You are looking back on a time that never existed. 50 years ago in working class areas like Glasgow and London people lived in grotty tiny damp houses and flats with no heating. This was working class life. The comfortable suburban lifestyles you are describing were considered aspirational and middle class. The preserve of accountants and clerks. In todays’ money it equates to a banker or business owner. Have you seen pics of kids from the 50s? Like rakes. No double glazing. No wardrobes full of clothes. No inside toilets for many. No washing machine or telephone. That was life back then for the vast majority. Right up into the seventies and eighties for many.

Um no. I was alive in the 70s ( which was 50 years ago. The 1950s you reference were 70 years ago).
The programme of council house building cleared the slums and created decent housing for people on low incomes. Cleaners, factory workers, shop workers, those no working.

SarahAndQuack · 05/11/2022 09:01

Ineverwannabelikeyou · 05/11/2022 08:46

I think you're agreeing with her, someone on minimum wage as he was, could not afford the equivalent lifestyle he had. They could not afford to buy the same house (or any house) or go on holiday or down the pub on one low wage.

I'm not agreeing; I'm doubting he was on minimum wage and also pointing out that it's not a meaningful comparison. There's no point in saying 'we all lived well of minimum wage back then' when costs of things were so different.

Dinoteeth · 05/11/2022 09:05

@Nevermorethis there were tenements in Glasgow still sharing toilets in mid 90s. 🤢 most had been upgraded but those ones hadn't.

Ineverwannabelikeyou · 05/11/2022 09:09

SarahAndQuack · 05/11/2022 09:01

I'm not agreeing; I'm doubting he was on minimum wage and also pointing out that it's not a meaningful comparison. There's no point in saying 'we all lived well of minimum wage back then' when costs of things were so different.

Why are you doubting he was on minimum wage? Translated into today's money he was on less than minimum wage. It is comparable - you're missing the point. It's literally the point she's making. A min wage job could cover a family and buy a nice house then. It can't now. It should. Literally the point.

Nospringchix · 05/11/2022 09:19

WeepingSomnambulist · 04/11/2022 18:26

There literally arent enough jobs for everyone in the work force to move up the line.

It is a pyramid. There will always be a huge number of the workface on the bottom, being paid minimum wage. Those positions will never pay more than NMW and there are not enough higher level jobs for everyone.

Even someone who works in a supermarket without going uo through management should be able to work full time and support themselves without government help.

Exactly this^. So, so many jobs are minimum wage. In some large industries eg care, retail, hospitality etc it is the default wage unless in management ( with very few management jobs available). Even some supervisor roles in retail are paid at very little over minimum wage and are not plentiful.

SarahAndQuack · 05/11/2022 09:23

Ineverwannabelikeyou · 05/11/2022 09:09

Why are you doubting he was on minimum wage? Translated into today's money he was on less than minimum wage. It is comparable - you're missing the point. It's literally the point she's making. A min wage job could cover a family and buy a nice house then. It can't now. It should. Literally the point.

I follow the point she's making. I am saying that I don't think you can simply plug numbers in to a converter and say 'well that must have been less than minimum wage then'.

I agree that a minimum wage job should support a family. Should it buy 'a nice house'? I am not sure about that. I would rather see decent, secure social housing brought back, and decent, ordinary houses to buy (rather than the absurdly tiny newbuilds I've seen, or the newbuild-mansions that are clearly designed for snob value).

Nospringchix · 05/11/2022 09:26

Tommyrot · 04/11/2022 18:28

It should be but there would also need to be cheap social housing available and there isn't. I don't think minimum wage could cover childcare either.

Totally agree. High housing costs are a big problem. If these were lower it would be much more realistic for people to live a good life on MW. I think not replacing social housing sold off through right to buy was a huge mistake ( or possibly right to buy in itself)

Belledan1 · 05/11/2022 09:32

Have you said what your financial position is OP? I can't see you have.

NewNameNov · 05/11/2022 09:34

YANBU

I've just googled and 40 hours a week on NMW is about £19,760 a year.

So nearly £40k really should be enough to sustain an average family.

Sadly though not the case at all. Certainly down here in the south.

Topgub · 05/11/2022 09:35

Getoff · 04/11/2022 23:52

It's economically illiterate to think you can make people richer by printing money, or forcing up wages. The only way to increase standards of living is to increase productivity.

Money is just a tool we use to denominate debt, it has no intrinsic worth. If you change the amount of money people get for doing the same job, that doesn't make people better off, it just makes money worth less. Nothing you do to people's wages changes the value of their actual economic output. The only way to change the value of what someone produce in their job is to find a way for them to produce more or better quality output. Then they will be worth more, and can be rewarded proportionately, without money simply being devalued.

And if your role doesn't produce anything you can measure easily?

Topgub · 05/11/2022 09:37

saraclara · 05/11/2022 00:07

But (and please forgive me - I have just said I'm no economist!) - why can't we do more to equalise society? No one needs to be as rich as the richest people in this country, do they?

If there was barely any pay differential between working at Tesco, and studying for treats and taking on the subsequent debtand responsibility of being a teacher, or a doctor, or a business leader, then no-one would bother. And we'd have a shortage of degree level professionals. So basically most NHS and education professionals, engineers, scientists, pretty much all the skilled people we need to fix our problems and develop our country.

Jeeze, I'd have loved to earn the same as I did as a teacher, in a job where I had no responsibility and could forget my work as soon as I clocked off. And my nurse daughter looks back with fondness at her student job on the tills at Tesco. She'd certainly go back if she could earn the same.

There has to be a pay differential if people are to study and take on scarily responsible jobs. But no-one is going to pay professionals a lot more if minimum wage is raised, in order to retain the differential.

Except studies show this isn't true

Even the highrs6of earners are not solely motivated by money

They're motivated by the passion for what they do.

CecilyP · 05/11/2022 09:38

Ineverwannabelikeyou · 05/11/2022 09:09

Why are you doubting he was on minimum wage? Translated into today's money he was on less than minimum wage. It is comparable - you're missing the point. It's literally the point she's making. A min wage job could cover a family and buy a nice house then. It can't now. It should. Literally the point.

At £15 a week (presumably take home) in 1960, he most definitely wasn’t on minimum wage. If we take it as the minimum someone was likely to have been paid by a normal employer for the sort of job that would currently pays minimum wage as obviously there was no official minimum wage.

By way of contrast, as a minimum wage type job, I worked in a bar in 1974 and earned the princely sum of 40p per hour, which mounts up to £16 gross for a 40 hour week. And there was a colossal amount of inflation between 1960 and 1974!

So I’m pretty sure £15 was a good wage in 1960.

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