One in five British workers and their families are likely to have inadequate standards of living because they are being paid less than the living wage, according to a study.
The research by the consultants KPMG found that 4.82 million workers have to survive on less than a living wage,currently £8.30 an hour in London and £7.20 in the rest of the country. The TUC described the findings as \”shocking\”.
The government has resisted campaigns to increase the current minimum wage of £6.19 to living wage levels, fearing that it would hit employment figures. It argues that it is a poorly targeted poverty measure.
The government did do something. It raised the personal allowance for tax. And the difference between the living wage and the minimum wage is, to within pennies per hour, the tax that is charged to low wages.
You want the poor to earn more? Then stop bloody taxing them so much!
And Ritchie says:
I have no reason to doubt the report; it only supports known earnings statistics. That said, until Conservatives (indeed, any politician) can explain how they will address this issue (and Labour has started with the ungainly predistribution policy) then they have no right to berate those claiming benefits whilst in work. It is simply not possible to live with any respect on these wages.
That leaves the more important question in need of an answer, which is how come we tolerate a society where this is not just permitted but is clearly acceptable?
Quite. Why are we charging income tax to someone working part time on the minimum wage?