Does this make sense.

[guardpig]

Now can I run this past you?

Edthe Red(and other parties which are also available) keeps banging on about the LIVING WAGE.  He is really beginning to annoy me. Why? The idea of people earning a living wage is good? It makes him look good?

Well

First we have the minimum wage - but that is not enough to live off, so you get benefits.

Now we have the living wage - but if that is enough to live off why would most families still be in receipt of benefits?

AND if the minimum wage is not a living wage then how can any government actually have the gall to tax people earning it?

Currently on the minimum wage, working 40 hours you will pay both tax and NI.  If the income tax threshold was raised to the minimum wage of £6.31 per hour level then those people would be very nearly taking home the same(did have the exact figures but it is only a few pounds) as somebody on the recommended living wage of £7.45 per hour.under our current tax regime.

Now the living wage is giving RedEd good press.  The Unions are lapping it up and fighting for the living wage, again the good guys.  Our Council tax has just gone up by 1.9% and our Council are paying or going to pay the living wage - elections next month!.  Funny our family income hasn't gone up at all, but lots of people who think it is a good idea just don't realise they are paying for it. - ah well, the poor low paid council Worker((())).

Is it only me that thinks 

1. Nobody on the minimum wage should be taxed/nied.

2.  The minimum wage should go up to (approx) £6.50 per hour free of deductions to make it the equivalent of the so called "living wage".

3.  This would be win, win for everybody - employees, employers and politicians looking for votes.

4. Nobody on benefits should pay tax.

So why do they like this LIVING WAGE? - because they get good press while actually taking more tax revenue from both low paid employees and their employers!.

Putting the tax allowance up should take a significant number off benefits, thereby saving money and therefore not costing us, the consumer and taxpayer, as much as the living wage would.

Does anybody see my point?

[stroppy*cow]

That would make sense to me.

And as for the mythical "pay rise", it's been so long since I've had one (6 years) that I've forgotten what it felt like!

[ginap.123]

Same here, I'm council & can't rememer how long it is since we had a rise although we're losing staff & having to cover other jobs as well as our own

[soppysofty]

The living wage is an assumption of someone working a 'standard' 40 hour week.

That means a full-time job!

Cannot remember when I last saw a 'full-time' job advertised, all part-time or 0 hours contracts now.

I have found it easier (and better) to go self employed and work as a sub-contractor for my employer.

Means that I pay less in NI and tax and I am free to work for anyone who will pay me when my employer has no work for me.

Seems to be working out OK so far but still need WTC and a little bit of Housing Benefit to make ends meet.

[saasher2012]

I also am self employed& on contract for a certain number of days but means I can take on other work without fear of conflicting interests, but I totally agree with all that has been said, but where do you begin as every case is different, do they look at individual cases or just lump everyone together, if no tax is paid how do you stand with pensions etc?.

[ed_blackadder_1]

Our firm haven't taken on any fulltimers for years, apart from managers that is,  mind you we arn't taking on staff full stop, any one leaves we all have to change hours to cover what we have lost.  Our firm pay above minimum wage but below living wage, our pay rises have been 2 to 2.5 per cent over the last few years.  I work 22 hours and don't pay tax any more but do pay NI.  I don't get any benefits because OH earns the " average wage" and has just been awarded a 3.1 per cent rise, which seems fantastic, but he hasn't had a rise for about 5 years.  If we do take anyone on they will be on a 3.75 hour contract, big whoop, but at least they come off the unemployment figures.

[rose2008-2008]

Yes it makes perfect sense to me. I just have to add that i wish the whole system of what you earn and what tax you pay and what benefits your entitled too would become a lot simpler and less long winded. They say they want to save on paperwork and then they send countless pages of it especially for Housing and Council Tax benefit Notification. Sorry just had to say.