« Daily Debt Tips Home
New minimum wage rule to cause debt concerns?
Wednesday, August 4th, 2010A new minimum wage rule could see some of the country’s lowest earning families facing debt troubles, it has been suggested.
As of January 1st 2011, National Minimum Wage (NMW) regulations will change - meaning low-paid workers will not be able to participate in travel and subsistence expenses schemes that are used by some businesses.
The Low Incomes Tax Reform Group (LITRG) announced it was disappointed the NMW had not agreed to a wider review of the situation.
Speaking of the expenses schemes, LITRG noted: “Without [the benefits] many low-income workers will be worse off still.”
The organisation added it is hopeful the new 21st Century Welfare consultation will be more allowing of suggestions to improve the situation of low-income employees facing high travel-to-work expenses.
It was recently highlighted by the Institute for Fiscal Studies that there is an alarmingly uneven distribution of wealth in Britain, with a large proportion of money resources held by a relatively small proportion of the population.
By Joe Shervin
