Austin Macauley 02 September 2015

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

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.’

SIGN UP
For your free daily news bulletin
Highways jobs

Residential Assistant

Essex County Council
£25081.00 - £25395.00 per annum
Residential AssistantPermanent, Full Time£25,081 up to £25,395 per annumLocation
Recuriter: Essex County Council

Senior Planning Officer

Durham County Council
Grade 11 £39,513 to £43,693 Grade 12 £42,708 to £46,731 per annum (Pay Award Pending)
Durham County Council is looking for experienced and knowledgeable Senior Planning Officers to join our vibrant Development Management team. Our team Durham
Recuriter: Durham County Council

Head of Service – Social Care

Wrexham County Borough Council
G15 £63,148 - £67,058 per annum
There is an exciting opportunity within Children Social Care to join the senior management team Wrexham (Wrecsam)
Recuriter: Wrexham County Borough Council

Head of Service Social Work & Specialist Support

Blackburn with Darwen Borough Council
Grade M scp 60 £72,118 - scp 64 £77,293
There couldn’t be a more exciting time to join us. Blackburn, Lancashire
Recuriter: Blackburn with Darwen Borough Council

Cafe Assistant - Weald Country Park

Essex County Council
Up to £13.3000 per hour
Café Assistant (Weald Country Park)Contract
Recuriter: Essex County Council
Linkedin Banner