Wednesday 14 November 2012

Working for a living wage

There is an argument which says that paying workers a 'living wage', as Angus Council has just pledged to do, will cost jobs however, on balance, Calton thinks it is a good idea. It is true that some workers on minimum wage can get their income topped up by tax credits however there are stringent rules which prevent many part-time workers being able to claim working tax credit which disproportionately affect women, since they are more likely to be in part-time, low-paid jobs. The living wage will therefore benefit those women and that is to be welcomed. After all, let us not forget that the burden of caring, not just for children but also for the elderly, falls on women and often prevents them from taking full-time employment or from progressing in their career beyond low-paid work. It is also a fact that, if you give more money to low-income families, they spend it, with a resultant boost to the local economy. And a rise in wages means a drop in the need for top-ups from the state. Sounds like a win-win situation to Calton.

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