I see this subject doing the rounds again in mainstream media and have had a few on social media challenging whether it is affordable, workable and deliverable, In my mind it is so more on that below.
The first impression I have often got is that business owners see the switch from a single digit National Living Wage i.e £7.50 to a double digit one i.e £10.00 and automatically come to the opinion it is unaffordable and the scaremongering ensues with the comments as to why it is unaffordable.
So lets take a look at that figure of £10 and break it down, if you should be lucky enough doing 39 hours a week over 52 weeks it works out at a yearly sum of £20,280 some may work it out differently but here we will keep it simple but regardless that is the yearly sum give or take a few quid.
That £20,280 a year Gross now does not look so great now given the cost of living and amounts to £1,690 monthly gross, take off income tax and NI and its £1,422.51
If you have other deductions besides Tax and NI you can calculate it here:
I am sure most will agree that when you take into account living costs and housing £1,422.51 is no great sum given the cost of mortgages let alone anything else and with energy companies and other corporates wanting ever more from us this £10 an hour NLW is much needed and shows just how £7.50 is unaffordable to the workforce and why poverty is becoming rampant, it is my opinion which I hope others share that if you are working at least 39 hours a week you bloody well deserve to be looked after and paid enough to meet expenses.
£10 an Hour is not unafforable to employers and if they cannot afford it they need to seriously look at there business models as its not working and remember that £10 an hour helps them as it will generate spending which in-turn creates demand and an increase in profit and employment levels this is basic ecomonics, it also creates happy and healthy employees which reduces demand on public services.
Finally it is my opinion that a £10 an hour NLW cannot wait until 2020 and needs to happen now and certainly at the begining of a new government for the reasons above.