I’ve always supported the UK Government’s commitment to initially introducing the National Minimum Wage and ensuring that it increased regularly, with the aim that every employee would receive a fair wage. As the annual rises have been fairly small I’ve wondered how they can make much difference to the lives of those on that basic minimum, but with the cost of living having been fairly stable, I figured that the increases were probably just about acceptable. Not so now of course, with the cost of living having gone through the roof and so many more people struggling to make ends meet. Yesterday’s announcement that the minimum hourly pay under what is now known as the National Living Wage, will rise next April from its current £10.42/hr to £11.44/hr, (a 9.8% increase) for workers aged 21 and over (as opposed to the current aged 23 and over) means that anyone working a standard 37.5hr week, will see their pay rise by £1,994.36p.a. and their monthly pay by £166.20. The rate for 18 - 20-year-olds will rise by almost 15% to £8.60/hr, while the rate for 16 - 17-year-olds and apprentices will rise 21.2% to £6.40 per hour.  

  

This initially had me feeling relieved for hard-pressed workers but then had me wondering how some companies are going to cope. Will cleaning contractors, for example, who are currently paying the NLW and just about keeping their heads above water, be able to get their clients to pay extra to cover the increases, which we mustn’t forget will now include younger employees too? Or will they be forced to swallow the increases themselves, rather than risk losing the contract to a rival who may perhaps just have a way of completing the required work in fewer hours? Will corners be cut in cleaning processes? Will machines and equipment be serviced and upgraded as often as required and will chemicals still be used at the recommended dilutions? Will companies that previously gave younger staff the chance to pay their way through 6th Form and university with part-time cleaning work – an opportunity both my daughters enjoyed – stop bothering with young people keen to learn the ropes? 

  

According to the Low Pay Commission, over the lifetime of the NLW full-time workers have earnt £9,000p.a. more than they would have done otherwise - without any increase in unemployment. However, I’ve seen how the ULEZ (Ultra Low Emission Zone) expansion throughout London and similar schemes elsewhere have damaged local economies along with the livelihoods and wellbeing of those without compliant vehicles or the funds to pay a £12.50 daily ‘fine’. Plus the way LTN’s (Low Traffic Neighbourhoods) have increased commuting times and impacted on the delivery of supplies. Are we about to reach tipping point I wonder? We all need to live but we also need jobs. And without those jobs we can’t live. Your thoughts please?