Seb

Here we go again. Above inflation rise to the minimum wage which will cause even more pressure on businesses and feed into inflation. It will make life even less affordable for the lowest paid. Cue the usual "your business isn't viable if you cant afford to pay a living wage" posts from the terminally thick that would struggle to run a bath, never mind a business or employ people. Here, for anyone that can be bothered to educate themselves even in the slightest, is why the circa 50% rise in minimum wage in the last 6 years has made life less affordable and contributed to the cost of living crisis. Minimum wage employee 2020: Total cost to employer (wages + NI + pension): £18,460 Employee can make 18,460 widgets in a year. Cost per widget (ignoring any other cost or profit): £1 Take-home pay: £15,202 Widgets the employee can afford: 15,202 2027 min wage of of £13.20: Total cost to employer (wages + NI + pension): £29,436 Widgets made in a year (same productivity): 18,460 Cost per widget: £1.59 Take-home pay: £22,050 Widgets the employee can afford: 13,868 They’ve had a 45% increase in take-home pay but can afford 9% fewer widgets. This is why you are worse off. Now factor in other business costs, higher corporation tax, higher energy costs, higher risk from new legislation, maintaining pay differential, etc. etc. etc.. Yet the thick "yOuR bUsInEsS iSnT ViAbLe iF yOu cAnT aFfoRd AnOtHeR 50p" brigade are out in force championing this. Just increase the tax free allowance and reduce spending, for f***s sake. They are just driving businesses off a cliff in the UK.