A message for Mehdi Hassan

Your numbers are correct here:

Meanwhile, research from the Joseph Rowntree Foundation suggests the gap between the minimum wage and the income needed to pay for a very basic household budget has widened. An adult working a 40-hour week on the minimum wage will earn £1,027 a month, which translates annually to £12,334 in pre-tax income. According to the foundation, however, a single person now needs to earn at least £14,400 a year to reach a \”minimum income standard\” and afford a socially acceptable standard of living.

But you have missed the point.

These are pre-tax numbers. What matters to people is not pre tax numbers but post tax numbers. And the difference between these two numbers is almost exactly the tax and national insurance (not, note, including employers\’ national insurance, at the minimum a goodly chunk of which is paid by the worker in the form of lower wages) that are charged to such working poor.

The answer is entirely in the government\’s hands: raise the personal allowance for both taxes to the minimum wage, full time full year rate. Then the JRF number (which, to remind you, is a pre tax rate) will fall and will be the same as the minimum wage rate.

Which is, I assume, what you\’d actually like to see?

1 thought on “A message for Mehdi Hassan”

  1. Yeah, but Hassan’s one of those that’ve repeated the interesting position that raising the tax threshold is regressive, using that interesting LFF ‘analysis’ that seemed to think it would be more progressive for the state to spend the money on behalf of the poorest.

    Many of the same people were, however, also amongst those who complained when the 10p tax rate was abolished.

    Hopefully, at the next GE, LD party policy will be to raise the threshold to minimum wage levels. Can’t guarantee it, of course, but it’s certainly what I and a bunch of others within the policy structure’ll be pushing for.

    (which would make the second significant policy inspired by your witterings, the first should be in the next Queen’s Speech)

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