Chris Leslie – the shadow chancellor – said Osborne is simply rebranding the minimum wage and will end up imposing a ‘work penalty’ because workers will end up worse off with the freeze in tax credits.
Leslie said that the budget red book had shown that a lone parent with two children working on the minimum wage would earn an extra £400 a year through the new living wage. But the lone parent would lose £860 a year in the changes to tax credits.
He said: ‘This minimum wage increase is just a rebrand of the minimum wage – trying to call it something different. It doesn’t actually compensate in anyway for this massive take away from tax credits. The changes amount to a work penalty that he has introduced into the tax credit system. It hit very very hard.
The national living wage is such a bit of spin and classic George Osborne tying to step that little bit too far with a little bit of headline grabbing’.
(ed:..an interesting difference between britain and nz is the tax-fee threshold..osborne has increased theirs to over (nz) twenty-grand..
here it is zero..(even benefits are taxed..(!)..which is kinda surreal if you think about it for more than a nano-second..)
introducing a $15-$20,000 tax-free income here would go along way towards ending our chronic poverty/inequality..(and would end that madness of giving a benefit with one hand and taxing it with the other..)
..and making it universal would be the easiest poverty-busting master-stroke to sell to the electorate..you’d think..?..)