The National Living Wage - ends 19th May

[Samantha]

The National Living Wage was introduced at the beginning of April, as it's rather recent I felt the debate could be brought to Habbox!

Although Habbo is mainly aimed at teenagers, likewise with the forum, I understand there are a lot of older members, or those with jobs who could really get behind this debate.

Is the National Living Wage fair?

The National Living Wage started officially on the 1st April this year - it introduced a new minimum wage for those 25 years of age and older. As a minimum, they are now paid £7.20 an hour whereas those under 25 still get the National Minimum Wage (see the above image for the amounts).

Personally, I don't agree with it being called the 'National Living Wage' when technically, you can 'live' independently years before the age of 25. Also, those that are over 25 are effectively getting paid more for doing the same job that myself, an 18 year old or a 16 year old is doing. I don't disagree with it fully, as I get paid a little over the minimum wage anyway, but some people are in situations where they were getting paid more than the older ones before, but due to the change it has flipped and they are now getting paid less than them. I would rather it be given from an earlier age. In October, the National Minimum Wage increases to the following amounts:

£6.95 per hour - 21-24 yrs old
£5.55 per hour 18 - 20 yrs old
£4 per hour - 16-17 yrs old
£3.40 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

As so much more money is being spent with the National Living Wage, will most companies be forced to then start paying the National Minimum Wage instead of giving a little bit extra?

I won't give arguments for or against as I would rather see your views and not be swayed much by mine. Perhaps you have more information or insight into the National Living Wage and can speculate for us?

The debate is now up to you! Good contributions will be rewarded with reputation throughout the thread and the member who makes the best contributions throughout the month will win the Debater of the Month award, 1 Months VIP, as well as 250 tokens. Creating interesting member debates will also win you reputation/tokens!

[Mowgli]

Many companies have already made the decision to extend the National Living Wage to their younger employees, well the ones that care about good PR at least. You'll find that a lot of employers will just pay everyone on minimum wage the same amount - it's easier to deal with than having multiple different level.

The issue I have with the National Living Wage is probably an unpopular opinion, but it's one that companies have been talking about all along.

The National Living Wage will supposedly cost retailers an extra £3.26 bn per year. Now I'm sure everyone is aware that is a lot of money for retailers to fork out and it could mean that companies will potentially cut other benefits to pay for the National Living Wage - benefits such as overtime, extra pay for working Sundays and free lunches. It's understandable that companies will do this - as the money has to come from somewhere.

My biggest issue though is that the National Living Wage will affect job creation more than anything. If a company is forking out more and more each year to keep up with a higher payroll - then that's eating into money that could have otherwise been spent on a new employee. That means while you'll be bringing people who were previously on minimum wage above the poverty line, you could be causing many others to remain below it. I would much rather see companies investing in new employees and rewarding pay raises based on merit, rather than being forced to pay everyone at least a certain amount. Obviously that's in an ideal world however - and there are employers who will never give pay rises and don't care for their employees. But that's why if you're not happy you should look for another job - at least that should make you feel better about yourself that you're at least TRYING to go elsewhere where they reward you for all the work you put in.

[dbgtz]

Well, it should be noted the "national living wage" isn't so, and will only be close in 2020. It's also stupid to call it that since it's almost certainly cheaper in Newcastle than London or anywhere else in the South-Western region.

I suspect companies will either cut employee numbers, cut employee hours or raise prices.

[FlyingJesus]

If you force a company to spend more then their goods/services will increase in price, pretty basic. Inflation does happen naturally but this is just a way to speed it up and realistically helps no-one

[Mowgli]

Well, it should be noted the "national living wage" isn't so, and will only be close in 2020. It's also stupid to call it that since it's almost certainly cheaper in Newcastle than London or anywhere else in the South-Western region.

I suspect companies will either cut employee numbers, cut employee hours or raise prices.

Thankfully there's already the London Living Wage to address that problem. While it's not a mandatory practice to adopt it, it's a scheme backed by the Greater London Authority and over 724 companies now pay the London Living Wage. That's £9.40 an hour..

If you force a company to spend more then their goods/services will increase in price, pretty basic. Inflation does happen naturally but this is just a way to speed it up and realistically helps no-one

Exactly this. It just increases the cost of living across the board - and matched with my point that companies will spend less on hiring new staff - you have a whole lot of people who can't afford to buy anything, just like you have now. It doesn't solve a single problem but lefties will be able to give themselves a pat on the back anyway.

[iBlueBox]

I've actually found with my employer everyone gets paid at least the national living wage, (well £7.22) no matter on their age. So I'm happy as Im only 21.

[-:Undertaker:-]

an outbreak of common sense in this thread as everyone realises there's no such thing as a free lunch.

i can't add any better to what @FlyingJesus; @dbgtz; and @Mowgli; have said

[Mowgli]

Unemployment is up. Some will blame Brexit fears, but I'd put forth that it's much more likely that this National Living Wage is to blame... http://www.theguardian.com/business/...y-growth-falls

[FlyingJesus]

Typical, the only bloody thread on the entire forum where everyone agrees and it's in debates

[Metric1]

I'm sorry but you couldn't get me out of bed for $10.46/hour (USD conversion).