On Monday upwards of two million UK workers get a pay rise. The minimum wage, now called the National Living Wage, will go up from £7.83 to £8.21 an hour. That is for people aged 25 and over, with younger people and apprentices getting rather less. It is also the 20th anniversary of the UK getting a minimum wage, for while this has long been a common idea in other countries, it was introduced into the UK by the Blair government with the National Minimum Wage Act in 1998. So, has it worked? A word about the economics, how it has worked here in practice, and what might happen in the future. We’ll tell you what’s true. You can form your own view. From 15p €0.18 $0.18 USD 0.27 a day, more exclusives, analysis and extras. Subscribe now For economists there have always been two main concerns about the idea that a government (in the UK advised by an expert panel) should set a minimum wage. One is that it damages job growth and hence increases … [Read more...] about Opinion: Twenty years on, we can say the national minimum wage experiment was a success. Now to the next challenge
The national minimum wage
A tribunal will decide whether Middlesbrough Football Club broke the law by deducting money from its staff's wages to pay for season tickets. A hearing was told that staff, who were paid the minimum wage, had requested to pay off cards for the 2016-17 season over a number of weeks. But by making those deductions, in early 2016, it meant the club paid its staff less than the national minimum. Now, Her Majesty's Revenue and Customs (HMRC) claims the club has broken the law - whether or not the staff were happy with the arrangement. Boro has mounted a legal challenge against HMRC's claim, which was heard at a tribunal which started on Monday at Teesside Magistrates' Court. Robin Bloom, the club's barrister, said it was simply doing its staff a favour after they themselves had requested the money for their season cards to be spread out over multiple weeks. "This is a deduction that has been made on the behest of the employee and for the benefit of the employee," said Mr Bloom. "It is … [Read more...] about Boro take on HMRC over national minimum wage claim at tribunal
ALL workers received a pay boost when the National Living Wage was increased on April 1, 2018. But Chancellor Philip Hammond has announced a further increase for some workers from 2019 - here's what you need to know. What is the National Living Wage and when was the 2018 increase? The National Living Wage is the amount of money all employees aged over 25 are legally entitled to. It used to be known as the National Minimum Wage, but it was re-branded in 2016. The National Living Wage increased from £7.50 to £7.83 for those aged 25 and over. The 33 pence-an-hour rise was introduced on Sunday April 1, 2018. From April 2019, the National Living Wage will increase by 38 pence-an-hour to £8.21. The compulsory National Living Wage was introduced in 2016. The first National Minimum Wage was set in 1998 by the Labour government. Before that, no official rate existed although trade unions battled hard to fight their workers' corner. In Budget 2018, Chancellor Hammond … [Read more...] about What is the National Living Wage 2019, how much is the UK minimum wage for 16, 18 and 25-year-olds and when did it increase?
News / UK and world by Press Association January 8, 2019, 2:41 pm FacebookTwitterLinkedInWhatsAppEmail Send us a story Sign up to our Daily newsletter A minister has apologised after mistakenly claiming the Conservative Government introduced the National Minimum Wage. Minister for energy and clean growth Claire Perry was met by cries from the Opposition benches following her comments at the despatch box, but swiftly corrected herself as she sat down on the frontbench. Ms Perry’s comments came as Shadow Business, Energy and Industrial Strategy minister Laura Pidcock raised the issue of household debt, arguing it was at its “highest ever level”. In response, Ms Perry branded the TUC’s research “discredited” and then went on to claim the Government introduced the National Minimum Wage before later amending this to Living Wage. Speaking during Commons BEIS (Business, Energy and Industrial Strategy) questions, Ms Pidcock said: … [Read more...] about Minister says sorry after claiming Tories introduced the National Minimum Wage
Iceland could be hit with a £21m fine after HM Revenue and Customs ruled that its Christmas savings scheme leads staff to be paid less than the national minimum wage. The supermarket allows employees to voluntarily set aside money from their weekly wages over the course of the year to help cover Christmas expenses. However, HMRC said the scheme means the supermarket is technically paying staff less than the minimum wage, with an alleged underpayment of around £3.5m a year for six years, according to the Times. HMRC also said the retailer should compensate staff for the cost of footwear, after employees were told to wear “sensible shoes” to work. Iceland’s chief executive and founder, Sir Malcolm Walker, told the Times that the company would fight the dispute in court if necessary, calling the claim “just madness”. City A.M. has contacted Iceland and HMRC for comment. … [Read more...] about Iceland to fight £21m claim that it pays staff less than the national minimum wage