General Chat

Which comes first, is it a price increase or a wage increase? They are inextricably interlinked. If the worker paid to produce an item gets a pay rise then inevitably the price of the item has to be increased otherwise the manufacturer's wages (Their profit) will be reduced. So the item now costs more to buy so the worker asks for another wage increase. It is a never ending spiral that does nobody any good but harms those most who are on fixed incomes such as pensions.

In some respects a recession is not all bad news as it tends to slow down wage increases and some prices or at least it prompts people to look hard at where and on what they spend their money. By increasing the tax and N.I. thresholds at least people now get a bit more money in their pocket that they can decide what to spend it on.

Wage increases without justification just fuel inflation. If you work longer or harder or more efficiently then a wage increase can be justified. Simply not having had a wage increase for a year without now working longer, harder or more efficiently is not justification.

Those who are earning low wages don’t necessarily recognise that they have more personal allowance than in previous years. They only see the percentage rise as advised by their employer.

When 2 separate people have brought this topic up in conversation, one employed in an Academy School was given a 1% increase but lost a ‘Special Needs Allowance’ despite still working with them. The other who works in a Commercial Bank had a rise less than the cost of living despite contributing to a turn-around in the Bank’s profits.

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Purple **^*Sparkly*^** Diamond - I presume the new tax level you mention refer to the amount you can earn before you start paying income tax, if so these are the allowances, if I have got these wrong someone will correct me.

The Personal Allowance for people born before 6 April 1938 from 06 April 2012 to 05 April 2013 was £10,660 per annum and from 06 April 2013 to 05 April 2014 it will be the same £10,660 per annum - on income up to £26,100 per annum.

The Personal Allowance for people born between 6 April 1938 and 5 April 1948 from 06 April 2012 to 05 April 2013 was £10,500 per annum and from 06 April 2013 to 05 April 2014 it will be the same £10,500 per annum - on income up to £26,100 per annum.

The Personal Allowance for people born after after 5 April 1948 from 06 April 2012 to 05 April 2013 was £9,440 per annum and from 06 April 2013 to 05 April 2014 it will be £10,000 per annum - on income up to £100,000 per annum.

However, these increases do not spell good news for everyone because due to the incrreases in personal allowances many will find their entitlement to certain benefits will be reduced - you know the scenario "with one hand he giveth and with the other he taketh away" ;-)

I have just retired and largely dependent now on OAP and some small private income. In last 5 years we had a 1% to 3% increase in my job, averaging out about one and a half percent per year. Better than local government increases, but was still earming far less than a dustman or pen pusher behind a council "help desk" when I retired last October.

Yet I found my spending power slightly increased over that 2008-2013 period. You did need to shop round, to "cherry pick" bargains and buy in bulk. If you still paid a mortgage, that has been a real bargain these last few years and has made a big difference - as one who remembers paying 22% interest at one point. Shares have gone up - both in actual price of shares and in dividends paid out.

Company pensions, sick pay, holiday pay, company shares, bonuses are usually very good - and were hardly in existence when I started work 50 years ago.

I have finished up on slightly more retirement income that when I was working. Not a massive amount in either case (less than £16k) but I have just enough to live comfortably and the increase in my OAP and further hikes in tax exemption band means that I will have something like a 5% increase this April and April 2015 and probably beyond. Do we just complain for the sake of it, I wonder.

I do of course realise a lot are struggling. I just wonder how much of it is due to personal debt on things like credit cards (30% APR), store cards (50% APR) and pay day loans (4,000% and more). And pets can be exceptionally expensive and far more poorer families seem to own pets these days.

When does the new tax level start? I thought I read that the amount earned would be higher before being taxed but can't remember when it comes into play. I have a book somewhere where I wrote down my income and expenditure when I rented a house in the early 1970's, wish I could find it to see what the figures were. I always had enough to manage on then and didn't get into debt. Wouldn't be that way now I don't suppose, glad I am not having to start out again.

Lizx

When I first moved away from home, 40 years ago, my 4 roomed privately rented flat cost £8 a week, my pay (as a clerical assistant in the MOD) was £40. Then, a 'fair' rent was put on it - up to £10 a week (this included rates) - a quarter of my wages.
I now live in council accommodation - albeit a 3 bedroom property, the rent and council tax is half my (local government) wages.
A one bedroom council flat is all of £5 cheaper a week. :-S

I wish we still had 'fair' rents!!

Well being a special needs aux in a local school, i can tell you since i started in 2006 i am still on the same hourly rate and have had no pay increase whatsoever. Before I took the job, I cleaned 2 days a week for an elderly gentleman. He paid me £10 per hour. It was only 4 hours a week but it helped pay the bills. I get less than that for being a proffessional and for graduating from UNI last year.

What annoys me even more is my utilities bill for the year totals some £2600.00(for oil and electric) between my oh and myself, our combined petrol bill per week is £100 thats £400 per month without even going out!

With food prices increasing on a weekly basis, how can the government say, my take home pay is more now than it ever was.

I remember when we first married, my electricity unit price was 5p and now is 16 p. We still use more or less the same units but the price has trebled!

We hardly go out and socialise, dont smoke and only occasionally will i have a glass of wine(xmas and new year)OH is teetotal. Dont know where we can cut down unlees we freeze and starve!!
Florence
in the hebrides :-( :-P

I work for local government, and thanks to re-grading - you've got it, managers went up a grade, those they rely on went down and lost pay - and the 5 year pay freeze we've been on, my take-home pay is the same as it was 11 years ago :-|

Meanwhile, rent has risen, utility bills have skyrocketed, bus fares have more than doubled......

If that's what he claims, that someone's better off, and as the head of the council had a £47k pay rise last year, you can guess what 'class' are better off. But then again, he never looks further than his nose, so as far as he's concerned, as long as his pals are better off, that's most PEOPLE - the rest of us are the scrapings off his shoes. :-| :-| :-|

Invest £2.00 with interest of 1.5% and after one year the RPI is 2.5% .. you loose..
Your £2.00 is worth less than it was when you put it into savings
As for personal PAYE Tax cuts? yes the government just keep on spouting this while the employers are paying more and more in NI contributions and that is why we cannot afford to employ more people. or increase wages

Dear One Foot

Hello

I have to say, the salary is not going up that much at all but the prices
for essential outgoings is way beyond reasonable.

Most people where I live are struggling to keep going.


Take gentle care, One Foot
Best wishes
Elizabeth,
xx

This week the government is saying most people in the UK have seen their take-home pay rise in real terms in the past year. Ministers say new figures show everyone except the richest 10% saw their take-home wages rise by at least 2.5% once tax cuts were taken into account. They also say that consumer goods inflation is rising at a slower rate than wages.

I thought I lived in the UK, I must have got that wrong, because despite the increase in the state pension that came into effect in April 2012 of £5.30 a week and the governments promise that pensions will always rise by the greatest of inflation, earnings or 2.5 per cent - why do I find that my disposable income buys less year after year after year. Take home pay may have increased but that does not mean that people are better off :-(

Does your take-home pay or pension stretch as far as it used to or is this the government just manipulating the facts to make them say what they want them say?

Personally I think economic growth built on low wages, high house prices, increased personal debt, and the hopes that high speed rail and fracking for shale gas, will not solve the problems of low wages and the chronic shortage of affordable homes - for most ordinary working people.