National Minimum Wage to be dissolved
Post Categories: Welfare Reform • uk government • unemployment • work for your benefit • workfare
Tags: National Minimum Wage, National Minimum Wage Criticism, NMW, Training Wage Bill
Flexible New Deal Scandal can reveal that the Government is planning to dissolve the National Minimum Wage which becomes of a huge worry of allowing workfare to go mainstream. At current all people participating on Government schemes such as New Deal, Flexible New Deal and Work for Your Benefit scheme are exempt from the National Minimum Wage.
Training Wage Bill 2010-11
Most of this article will be speculation because the Bill is a Private Members Bill so we cannot get the contents of the Bill.
The National Minimum Wage doesn’t appear to be disappearing any time soon. The official term would be to be repealed, however, I am stating it will become “dissolved” as such Bill is aiming for legislation to bypass (not remove or replace) the National Minimum Wage what appears to be beyond any Government scheme.
A Bill to make provision that persons receiving a training wage are exempt from legislation relating to the minimum wage; and for connected purposes.
The above is a description for the Bill. We can only assume this means apprentices etc. and those deemed to be “training” (outside of Government unemployment/training/employment courses) to be able to receive below the National Minimum Wage.
National Minimum Wage
The NMW was designed as a minimum level of income, intended to be for those doing a job that they aren’t fully qualified for or lack experience in – with employers free to set hourly rates above that to persuade skilled workers to join their company. As we know, many companies refuse to pay any more than this regardless of the persons skills, qualifications, experience and attributes.
Taking into account the above, The Training Wage Bill will exploit people to be paid below much less than the law had previously deemed they are worth. We all know that at current the National Minimum Wage is £5.80 but in the first instance I am worried about the exploitation of school leavers… at current due to the lack of experience this wage decreases to as much as £3.64 for those above school leaving age but under 18 and those over 18 but under 21 is £4.92. This is to encourage employers to take on these young people and train them rather than if everyone had the same NMW rate they wouldnt stand a chance.
Apprentice Rate (Oct 2010)
A new Minimum Wage exist, apprentices in their first year of apprenticeship or under 19 are only entitled to £2.50 per hour. Elsewhere, the National Minimum Wage is going to become £5.93 (not £5.84) but those on the small lower bands are denied an increase.
UK Workfare
We all know that benefit claimants are to be forced to work for their Jobseeker Allowance. We all know that providers are able to sell participants to companies and are likely to cherry pick the skilled people to employers and park the rest on community service duties. These skilled people will be getting less than an apprentice!
“Training Wage”
It is unlikely to be referring to apprentices, now that they have their own NMW rate and it doesnt apply to Government schemes (including unemployment schemes) as they are already exempt. This is my second concern… that is to shift the millions of unemployed people, job seekers could become required to take a job below the National Minimum Wage. Although, it wont be below the NMW as the law as it stands will be tweaked to allow this.
My assumption is, its part of the Work Programme – but at arms reach. (The second reading of the Bill has been delayed until early 2011 to keep it low key) The National Minimum Wage could allow an additional band criteria depending on the length of those being unemployed… and of course, the employer must offer “training” too… that surely is on the work training? (“This is how to operate the till….”/”This is how to lift boxes” – H&S requirement).
For example:
A person who has attained a period of 6 months unemployment and in such period had claimed a jobseekers allowance, that has been offered employment with an training aspect shall be entitled to a rate of National Minimum Wage as prescribed by the Secretary of State.
(The Regs/order would define what rate it referred to – would discourage people to claim so long or at all to avoid losing the real NMW rate – Government had already planned greater sanctions for those refusing work)
It is likely that unemployment gaps can be joined and its not able to have “good cause” for turning down the job because its well below the top NMW rate. It could mean that you are entitled to £5.93 an hour within the first few months of your JSA claim but if you have claimed over 9 months, and the employer claims to “train” you (perhaps even the Government pay for some silly certificate i.e. First Aid, H&S, Food etc. – are all good to have but not training that can be directly related to a job) could become something like £2.43 an hour. Perfect, then workfare doesn’t sound so bad!
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6 Responses to “National Minimum Wage to be dissolved”
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Perhaps this is actually an alternative option for workfare?
Scrap Work for Your Benefit scheme… and lower the NMW to those who have been unemployed for a while and where the employer promises training. No doubt, this training stuff be linked directly to Work Programme provider/Jobcentre Plus so you are sanctioned if you refuse (up to 3 years!).
I’m glad I’m not a NEET.
its best wait to the fog clears on this,however it must be felt by previous episodes’ of “back to work” it wont be short of controversy.
its very highly unlikely that the return of £4.50 an hour would happen,however there are real concerns as to treatment/exploitation and what part those covered by the disability act would play in all this.
its very sad state that the poorest are being hit by bailouts of not just uk financial institution practices icelandic ones too,anywhere where the next fire appeared also.
any attempt to involve private companies given their past exploits is risky and any large amount of taxpayers money would need real justification,its unclear what the real purpose of workfare is supposed to do,its certainly not going to create real employment it could be exploited to save local councils cash and cut jobs however this would conflict with the beloved private sector that they crave,it may equally be because unemployment is here to stay in large numbers and any remove it from the headlines and suppress true figures would be of interest to them.all this boils down to is a very serious economic situation that’s completely unsustainable and its more then the deficit that needs addressing and not in a slapdash superglue fix.
I have some negative experience of JSA and FND. I have believed for some time that unfortunately there may be great social unrest just around the corner if the govt continues to punish ppl who are actively looking for work, which let’s face it is not easily attainable to say the least. Someone has mentioned the Greek situation, all we can do is wait and see, ppl have a breaking point. if those in power are happy to throw taxpayer’s cash at set-ups like FND with no positive results, apart from trying to squeeze well meaning applicants off benefits, this type of situation could boil over into something very nasty indeed.
If they think I am working for £4 an hour, they can think again, I have been unemployed 3 months,
I am a married man with a family,nobody, I repeat nobody is going to push me on some stupid scheme for this pittance. It is scandalous.
What about all these human rights foreigners can claim, us British have to like it or lump it.
Hard man, unfortunately you aint got much choice yet again the giovernments recent spin making out everyone is a bludger and thief that claims benefits means alot of the uninformed public dont look so favourable on the unemployed.
WORKFARE is coming to these shores, designed to enslave the unemployed, destroy unions, break strikes, lower living standards effectively scrap minimum wage as you will be training for roughly £1.70 an hours if your lucky in other words supermarkets will get you to stack their shelves for six months and your still unempoloyed and only entitled to 64 pound, you don;’t turn up you get sanctioned no money, your rude, no money, you do anything unsupervised including the wwiping of your own backside and you get sanctioned and you get nothing. The name of the game is confom or die. My so called specialist advisor at Beaconncentre for the blind told me to stop whining my choice to sign on if i dont like it then i can F.O