Published on March 24th, 2014 | by Pete0
Minimum wage: The harsh reality
Last week, the ugly truth about the earnings of UK citizens was laid bare. Statistics published following a survey conducted by the national debt management company Payplan revealed that, over the past five years, 30% of Britons have been earning £6.31 an hour; the national minimum age.
Although you may first assume that the vast majority of these low earners are made up of young people, the statistics do in fact prove otherwise. While over 20% of 18-24 year olds are currently working in roles which pay this rate, a startling 10% of those between ages of 35 and 54 are currently on the minimum wage. As it turns out, a quarter of those in this age bracket have been earning this amount over the last five years. Yet more worrying is the revelation that 21% of these middle-aged people have had to rely upon their parents for financial aid.
The severity of the financial situation of those earning £6.31 was also made public, with almost half having accumulated debts, and over 70% finding it practically impossible to live off this wage. The national minimum wage is simply not in line with the rate of inflation and this is proving problematic for British low earners of all ages.
The severity of this issue is worrying for all involved, with debt advisors from numerous different companies having voiced their concerns. The 2014 national minimum wage is set to be recommended by government-run body, The Low Pay Commission, over the coming weeks, however job losses could come as a potential result of increasing it above the rate of inflation.