Summer Budget 2015

Stuey1

Yes...

I realise it is a distinct possibility they will be worse off in the short-medium term, however I see the removal of tax credits as a way to longer term standard of living increase for lower earners as companies will actually have to compete without governments subsidising their wages.

Its back to the same as the other day, I actually agree with what the current government are trying to do - I would probably have done some things differently but i'm not in charge

tapzilla2k

Once you factor in the changes to tax credits, inflationary pressures and other costs, those who are  low earners will be worse off. Even more so if they are on zero hour contracts. What you'll probably see are more Zero hour contracts to offset the rise in the minimum wage by some employers i.e. give hours to employees on zero hour contracts during peak times (run up to Christmas etc), then barely any hours when demand is low. Other employers already pay a living wage in parts of the country and that is £7.85 an hour.

I'm about £1,146 worse off according to the BBC calculator. So much for championing the self employed.

domtheone

You do realise it was never their money in the first place?  Another hideous Labour money go round system to bribe the lower paid.

As Stuey1 says, they may/will be worse off but the system has to change.

Sve

Worse off in the short term? Their going to be worse off forever. Where do you think this extra money is going to come from? Either companies profits take a hit which means less income for the tax man or prices rise to compensate.

johntheexpat

I remember posting just after the election result that I thought a Tory government was possibly the best of a series of very bad options.
I'm seriously considering admitting I was wrong.

Enki

The little upside in all this, the conservative party is now abandoning its free market principles, starting with  living wage.

Stuey1

or companies actually have to start competing for wages, increasing productivity and doing what they should be rather than just accepting government subsidy for wages...

There are no guarantees it will work, but it has the chance to work whereas subsidising wages will only end up costing more and more (which unless you hadn't noticed, we don't have more and more money)

Anyway, I'm done - like I said, i agree with what the government is trying to do, i think they should have dealt with some of it differently but it is what it is and its now time to just get on with it

Sve

Competing on wages, they will all pay the same. How do you get productivity up in a supermarket?

The only guarantee is the lowest paid lose money.

Typical I'm all right jack sod the rest.

IronGiant

Given the recent concerns about low or even negative inflation, increasing wages and putting up prices slightly may be a good thing for the economy.

Stuey1

Whatever you want mate, I have said my thoughts and will leave it...