Monthly Archives: February 2016

1% Pay rise

The Local Government Association’s final offer is a 1% pay rise for April 2016 and April2017. People on current minimum wage will see a mean a pay rise of between 6.6% and 3.4% the first year, and between 1.01% and 1.3%the second. This reflects the obligation for employers to comply with the new national minimum wage. The new national minimum wage will rise to £7.20 from £6.70 and reach £9 by 2020.

The government wants to call the National Minimum Wage, “National living Wage” but this is not real representation of the actual cost of living.

The Living Wage is calculated according to the basic cost of living in the UK on annual basis. According to the Living Wage Foundation the current UK Living Wage is £8.25 an hour for outside London and the current London Living Wage is £9.40 an hour. So either our Chancellor tries to create false impressions or his degree in history doesn’t qualify him for economics.

But back to pay rise of 1%; in reality this is an offer for pay cut. From April 2016 the 1.4% rebate on NI for employees on Employer Pension Scheme will be removed so the National Insurance will be up.

According to ECA International, the world’s leading provider of knowledge, information and technology for the management and assignment of employees around the world, the average UK pay rise was 3per cent in 2015. Taking inflation into account, salaries increase in real terms was 1.2 per cent.  

So the 1% offer means that salaries in public sector will go down by at least 2% in real terms.

That is all very good for the MPs who can give themselves an 11% pay rise.

It is not uncommon 2 full time posts to merge in half time post just because this is all the council, the department or the team can afford. Every year since 2010 public sector workers are asked to do more with less to cover a crisis that those who caused it never paid for and which is now only imaginary. Obviously our supposed democratic representatives in the Parliament do not think we are clever enough to know but, surprise! We do.

We should all say NO to this insult.