The national minimum wage rate is to rise: Finally some good news

As of October this year, the national minimum wage rate is to rise. The minimum rate will be increased by 20p bringing the wage rate up to 6.70 pounds. It is clear that millions of citizens across the UK will benefit from this.

British Prime Minister David Cameron is interested in giving the workers of the UK ‘more financial security’ to the workforce.

This means that over and above the 20p raise for the adult workforce, the young workers and apprentices will receive a 20 percent raise or the equivalent of 57p. For the young workers the wage rate is to rise to 3.30 pounds an hour.

The 3 percent increase in salary for the adult workforce and the national minimum wage is the largest rise in the last seven years.

That sounds simple enough until the convoluted regulations take place. For 18 – 20 year olds, their wage will rise by 20 percent as of October. For 16 – 17 year olds their wage will rise to 3.87 pounds. Apprenticeship salaries will grow by 57p an hour.

David Cameron is very pleased with the changes and looks forward to a better economic climate and more abundance for the citizens of Britain. He says:

“At the heart of our long-term economic plan for Britain is a simple idea – that those who put in, should get out, that hard work is really rewarded, that the benefits of recovery are truly national. That’s what today’s announcement is all about, saying to hard working taxpayers, this is a government that is on your side. It will mean more financial security for Britain’s families and a better future for our country”

Minimum wage rate to rise – Payday loans to fall

One cannot stop and wonder what will really happen when the wage rate rises. David Cameron and friends seem to think this is the ‘better future for our country.’ Is that really true? If the wage rate is to rise, what can we compare this splendid extra 20 pence to? What we are being sold is 20 extra pence, and we should be grateful to finally get is after waiting for it for eight years. 20 p does not even touch sides.

Quoting blogger and economics editor for BBC, Robert Peston:

“A 3 percent rise to 6.70 may sound derisory. It is the equivalent, for example, to just two and a half flat-white coffees in a famous coffee chain, and would allow the recipient of the wage to rent a one-bedroom place in a dowdier part of London, so long as he or she didn’t eat, use power, pay council tax or wear clothes”

Wage rate to rise – Are we still in need of Payday, short-term, high-interest loans?

Robert Peston says it all. It is stupid to believe that a miniscule pay rise, the first one in eight years is going to suddenly fix all ills and the poor people should now be able to pay for everything they need. Without a payday loan. Think again Mr. Cameron, this is not the solution and you know it.