Is the national minimum wage fit for purpose? Well, we will have a simplistic view into this and see why the government does not want to find another solution.

 

This is why I think it is not fit for purpose in 2024.

As we all know the government will always do what is easiest whilst spinning new changes as a good thing to the population, so we think we are getting a better deal out of there policies but this is incorrect as increasing the national minimum wage is only a short term solution to the problem of cost of living and the recent cost of living crisis we have recently felt as a citizen but the answer is not to increase the national minimum wage but for the government to work on keeping prices down, this could be in a multitude of ways including but not limited to what I am about to discuss.

The UK is a NET importer of good’s, wouldn’t it be better to not charge an excessive amount to import goods and raw materials and reduce the paper work needed to import goods as these all increase the end cost of products, after all businesses are in the business of making money.

Would it not be possible to lower the tax on fabrication and raw material industries to increase the chance of a company setting up in the UK? All the government refers to as industry is the car industry or food processing industry.

 

Why isn’t the National Minimum wage fit for purpose?

This is basic and simple.

You put up the minimum wage and it costs more to staff a company whether the company is in manufacturing, distribution or a shop selling the goods, this puts up the price of products and that cost is placed upon the buyer (people like you and me) at the point of purchase.

This is a cycle that happens almost every year and could be avoided if the government actually did something in the countries interest for a change and invested effort in keeping the prices down in the first place.

 

Who wins out with the current system?

As we all know we all pay tax on our wages and side hustles and with the increase in wages comes more tax to HMRC as we struggle to pay our bills and keep food on the table the tax office makes more funds with every minimum national wage rise.

 

Why does the government not want to change the current system?

As the above also comes into this subject you have to think why does the politicians want to keep the current system in place? We have to look at parliament to describe this.

At current how many politicians that debate and make choices for our country are landlords? It’s a high number, now think how many have shares in companies and get dividends from these shares?
how many MP’s bank accounts would suffer if the kept prices down? I think you know the answers to these questions and why they don’t want to keep the prices down, they want these companies profits to increase as they would because they are charging more per product.