NMW to increase again next year to £12.21 ph.

[ZoeZee]

If you’ve not had a pay rise this year, despite bringing it up to your employer, and now there’s set to be another 6% NMW increase next year (which is fantastic, don’t get me wrong) the pay gap is narrowing ever more between skilled/unskilled employees.

Skilled and those with MANY years of experience, might as ditch their responsible/stressful jobs (which often keep you awake at night) and look for something that doesn’t have the added responsibility?

Almost 20 years experience means nothing to some employers! AIBU?

Any employers who have a view on this increase, please let me know how this might affect you and your staff.

I do agree with it going up but it will cause problems. The was a home care business owner on the radio the other day who said they have a volume business and only make 60p profit per hour on the care they supply.
NMW has probably gone up to remove people from being eligible for UC or only able to claim less and to increase tax revenues as tax bands aren’t changing

Where on earth do you work OP that you don't even get SSP? And fo many people a period of 6 months sickness means they're unemployed, not on anyone's payroll,

I hope you get your raise OP! If not, vote with your feet!!

I think the idea is you can ask for a raise though
In a job that pays min wage, for example my job, we are all paid the same. You can't ask for a pay rise. Well you could but there's no point as we all get the same regardless of experience

The only reason we ever get an increase is when min wage goes up

There needs to be a market readjustment - if businesses can’t afford to pay their workers enough to live - and require those workers to be topped up at the tax payers expense with UC - then they shouldn’t be operating in this market. They must fail. And be replaced with more functional, efficient organisations that can.

Recognise there would need to be a dramatic market shake down for this to happen but I like to hope!

I don't grudge anyone on NMW getting an increase but unless the people above get a similar increase, we'll have a gap of people being willing to take on more stressful jobs for very little reward.

Packing boxes in a factory or, for an extra £50 work your butt off as a hospital cleaner, no thanks.

Absolutely

There is a massive devaluing on trades I think. Industries where there are minimum wage staff are having to put everyone's wages up. I think industries where workers aren't minimum wage then they aren't getting the same yearly increases so they are devalued in comparison. A care job with a council / pension/ holidays t&cs starts to look more attractive.

I'm quite old now. Worked in various sectors from min wage to managerial. All jobs have their pros and cons. Some have awful elements of whether high paid or low paid. Some industries are better than others. I wouldn't work in a kitchen again for example but I would waitress if I had to.

Many people lack capacity for certain jobs whether physically, intellectually or socially. We're not all capable of doing every job.

I agree with increasing NMW but it means that unskilled workers in the pub my husband is head chef in, will be close to his wage. After him having years of experience and training.

pretty much this
if your business model relies on paying people peanuts and relying on tax payers to subsidise their wage with UC then you shouldn't be in business

This, as a business owner.

I'd rather people were paid a decent wage by their employer, paying more tax and NI in the process, than have their low wages topped up by universal credit and the like. We have got to stop subsidising the Tescos of the world.

That said, I entirely agree with the OP, it is a worry for smaller firms. The charity I used to work at had bands based around the NMW so when it goes up, all other wages keep pace - which is only right and proper, but I can see this will start to bite.

I think as it continues to raise and yes tories and labour. Many more people really
will reconsider if a £1 or £2 above minimum is worth the extra pressure or load placed upon them.

Why be a warehouse manager for £15 an hour when you can just be the picker and packer for £12. Also the manager is often actually salary where as the pick and pack hourly so can out earn their manager some
months when lots of overtime is about.

There is so much more to work than just the take home pay though. I see it as similar to the argument for staying in work when you have high childcare costs which swallow up most of your wages. It gives you pension contributions, potential for promotion, better work experience and developing skills. There's no respect for those in unskilled NMW jobs just as there is none for sahms.

Typo, of course I meant we ONLY receive SSP! 🙄 and DH works in an industry where staff receive full pay for the first 6 months of sickness, NHS roles are the same!

OP I agree. It’s all well and good saying if you can’t afford to pay staff £12ph don’t have a business, but people are failing to see the knock on effect.

Local cafe prices will rocket up. Nursery fees, up, and places down (because settings will close). Same goes for care homes. Supermarket prices will climb. Pretty much everything is going to go up, which is fine, but the problem is when folks on 25-40k ish aren’t given equivalent percentage pay rises they become out of pocket, disadvantaged and their skills devalued. It’s a whole mess

It doesn't pay to be loyal to an employer

Sadly not lots of skilled people such as carers are being exploited by companies trying to get away with paying the absolute bare minimum. £12.21 ph is less than £24k a year; No one can live on that unless they’re in social housing and even then it’s massively pushing it.

I totally get that it seems unfair for other people who currently get paid marginally more after training but there are many “unskilled” minimum wage jobs that actually require great skill and these have historically been regarded as less worthy.

I'm thinking about this in relation to student loans, by the time this year's cohort have graduated basically working ft will mean you have reached the threshold to start paying it back. There will be no exemption for those "on low wages" unless they're working pt

THIS is exactly my point!

£5.5k a year.

I am looking at expanding my business next year. The increase combined with a most likely reduction in the employers NI threshold will mean I employ one member of staff not two and that one member will be on a lower hours contract than I had originally hoped. Labour are so anti business it's unreal. But I knew that. I'm just a tiny little business, not some massive CEO rolling around in my bid mansion. If they announce they are doing away with the small business relief on rates it will mean I can't expand at all.

Sadly you’re right, at least not in my case.