Quote:
Originally Posted by Nickelson
To quote the date from that blog entry ' 20-04-2008 '. I find that 13 months old  .
Hmmm, a person working for minimum wage will generally be in reciept of working tax credits. If that person was to find work decreased from 30 hours to 20 they would have the net income made back up with tax credits. This means that the worker has no incentive to get work back for 30 hours creating a poverty trap. |
I have to disagree with you that all workers on the minimum wage get working tax credits. My husband earns 5p an hour more than minimum wage (for a 30 hour week) but we do not get any working tax credits and we both pay income tax.
In fact working tax credits are an incentive for some employers to pay minimum wage becasue they know that the taxpayers will make it up to a living wage (for those who are entitled to receive working tax credits) and it is hard luck for those who aren't entitled to them.