Budget 2015: Osborne vs. the Economy
- Thread starter Mr Jack
- Start date
There was a fair amount of shock from the government benches as well - Tory backbenchers had to be reminded they were supposed to cheer by Ian Duncan Smith when the living wage was announced.
To her credit, even though she is an evil hypocritical communist, she is also an accomplished speaker and politician.
But she wasn't her usual firebrand self yesterday, and that was fairly obvious.
Work more.
When did IDS join?
Ever thought of being a politician?
I can see the cost of childcare going through the roof, and it's not like it's cheap atm!, especially when combined with the cuts in Child Tax Credits.
Nurseries are extremely heavily staffed for their size/turnover due to ratios and generally a low wage sector. One Nursery I do the books for has 53 staff and to cover a £2 / hr wage rise is going to put ~£200,000+ on the wage bill (a 35% increase).....and the only way to cover that is from fees.
This will be offset for some come 2017 when the free hours for 3-4 Y/Os (for working parents) will increase to 30 hrs / week - but - most Nurseries receive less in funding for those hours then they would if they were chargeable, so that's a loss that will need to be covered by another increase in the chargeable hourly rate.
Plus working parents still need the childcare from 6 months to 3 years, when it's all payable.
Ouch, I'm not going to be popular raising the fees this much
Be thankful if your kids have already grown up/gone to school!
Nurseries are extremely heavily staffed for their size/turnover due to ratios and generally a low wage sector. One Nursery I do the books for has 53 staff and to cover a £2 / hr wage rise is going to put ~£200,000+ on the wage bill (a 35% increase).....and the only way to cover that is from fees.
This will be offset for some come 2017 when the free hours for 3-4 Y/Os (for working parents) will increase to 30 hrs / week - but - most Nurseries receive less in funding for those hours then they would if they were chargeable, so that's a loss that will need to be covered by another increase in the chargeable hourly rate.
Plus working parents still need the childcare from 6 months to 3 years, when it's all payable.
Ouch, I'm not going to be popular raising the fees this much
Be thankful if your kids have already grown up/gone to school!
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![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Ouch, I'm not going to be popular raising the fees this much
Surely the fees are set by market demand not the cost base. If your market could bear higher costs you'd already charge them?
Agreed, the impact on lots of industries where wages is a large part of the costs is going to be huge, I just can't see the allowances the government is going to make on NI and corp tax covering it.
It will be interesting to hear what accountants think the effect will be in specific business examples.
It will be interesting to hear what accountants think the effect will be in specific business examples.
I still haven't bothered paying into a pension yet.
Soldato
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[TW]Fox;28286918 said:
Whoopee ****ing do. For most Public Sector workers who haven't had a pay rise in years (or at best have had 1%) another four years of being limited to 1% is a large pay cut.
[TW]Fox;28288419 said:
No, not everyone goes on the motivation of getting the most out of its customers it can (I know that might be a radical concept to you
) if we went on market forces we could charge a lot more than we do now (£35 a day for a full 10 hr day), as there is not enough childcare sufficency in the area, with only a few providers, and everyone has waiting lists.Back of the fag packet calculation shows the fees will need to increase to £55 a day to cover the wage rise.
The Nursery is a charity so profit is not the motivation, but a general aim is a net surplus of 5%, but it rarely achieves that either.
Soldato
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Guys, we don't need anymore input to this thread. These two clowns...sorry experts...have fixed the problems for the working poor. Just work more, perhaps in some kind of house designed for workers. Perhaps it could be called a workhouse?
Typical entitled Brit attitude - you don't see these eastern European workers complaining, no they'll just take what they're offered and get on with the job they're grateful to have in the first place. Perfect workers.
My sarcasm detector is twitching...I think it might be overloaded?
Well, I do have sympathy for public sector workers but not those who gleefully welcomed the assault on Ts&Cs for low paid workers that's happened over the last 15 years. In their case what goes around comes around I guess.