Austin Macauley 02 September 2015

Report: minimum wage rise is little more than a ‘con-trick’

Report: minimum wage rise is little more than a ‘con-trick’ image

Low-income families will be worse off every year between now and 2020 thanks to chancellor George Osborne’s ‘con-trick’ Budget, union leaders have claimed.

The boost to minimum wage announced in July will be more than cancelled out by tax credit changes, according to a report by Unison.

Its analysis shows a family with two children where both adults are over 25 and work 35 hours a week on the minimum wage will lose £1,615 a year.

However, they would have been £850 a year better off if no changes were made to tax credits.

A family with one child and one earner under 25 on minimum wage will lose £1,460, while the same family with one earner over 25 will be £1,277 worse off.

Unison general secretary Dave Prentis said: ‘The lowest paid have been led to believe they’ll be better off next April when the minimum wage goes up and they get a pay rise. But as the government gives with one hand, it snatches away with the other.

‘At first glance low-paid workers might look quids in, but on closer inspection the chancellor is really rewarding them with an income cut. Many workers on the minimum wage will lose out as a result of the plans. It is dishonest for ministers to claim that people will be better off. They won’t.

‘Any gain to families from the enhanced minimum wage and a higher personal tax allowance is going straight back to the Treasury through the changes to tax credits.

‘The chancellor’s pay con-trick will create chaos to household finances and plunge more families into poverty.’

Time for a council tax precept to fund CCTV image

Time for a council tax precept to fund CCTV

The crisis in funding for CCTV systems is not being addressed by the government or the police and is leading to the curtailment of this vital service in local authorities across the country. How can we ensure that communities that want this service continue to receive it, asks Tom Reeve.
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