You are reading a page from a free video eBook called Heaven or Hell It's Your Choice, for more information click on the website button above.
This page was written in 2003 but it is still relevant due to inflation.
Official UK government figures are used throughout this analysis.
Minimum wage as of October 2003 was £4.50 per Hour - WOW
This equals £36 per day for the average 9 to 5 worker = £180 per week
National Insurance contributions at 10p in the pound for every pound between £76 and £585 (8.4% if you are contracted out of SERPS)
This translates to £10.40 per week in National Insurance contributions.
Income Tax at 22%
Means that you will pay £39.60 pence in Income tax per week.
So the average minimum wage worker, will take home from October 2003 - £130 a week exactly.
Not taking into account allowances or any benefits etc.
This may seem ok to some, i.e. people who live with their parents maybe, but for the average person living alone it is a joke.
Below is a slightly more accurate interpretation of minimum wage for people who live in digs on their own.
£130 A WEEK * 52 WEEKS A YEAR = A TAKE HOME PAY, OF £6760 PER YEAR FOR A MINIMUM WAGE WORKER
Council Tax for a single person for the year, at least in Liverpool, was £590.
So your total earnings for the year have now dropped to £6760 - £590 (council tax) = £6170
I would like to think a TV is not a luxury Item, so lets deduct that as well from the yearly total - a TV license at the time cost £116
£6170 - £116 (TV licence) = £6054
Minus £8.51 a month for telephone line rental - from cable not BT which is higher - because you need a phone so as to make sure you get all those important calls from companies offering you new jobs, and anyway, these days you would look silly if you didn't have a phone?
I still no people who don't have home phone lines.
£8.51 * 12 months = £102.12 (phone), take that from the £6054 above, and your left with £5951.88 in your yearly account.
Minus your water bill, bit of an essential, at £4 a week = £16 a month * 12 months = £192 a year - so once again take that away from the total of £5951.88 = £5759.88
And of course if you live on your own then you will have to pay the electricity bill, at lets say a pound a day = £7 a week = £28 a month = £336 per year.
So once again we have to take that away from the yearly amount above - £5759.88 minus £336 (electricity) = £5423.88
Ok and you probably have gas, approximated and averaged for the year, at roughly £2 a week, = £104 a year.
Take that once again from the yearly total = £5423 - £104 (gas) = £5319.88
Food = lets say £3 a day * 365 days a year = £1085
So that leaves £5319.88 minus your food cost at £1085 = £4234.88 left in the kitty for the year.
Rent / Mortgage = lets be conservative, as my friend lived in a crap flat just outside Toxteth - nice area NOT - and rent was fixed at £50 a week - so lets take this as the national average?, no rebate available because full time minimum wage work is classed as fair?
CITY OF CULTURE
JUST UP THE ROAD FROM ME
£200 a month rent * 12 months = £2400
So we take that £2400 a year rent from the £4234.88 total, so left in the yearly purse at this point should be £1834.88 to spend on oneself
£1834.88 divided by 52 weeks a year, leaves a grand total of £35.28 pence per week to spend on luxury items.
Now lets factor in transport costs to get to work etc - unless you walk or cycle?
So lets factor that in, at lets say £2 a day bus fare so as to get to work and back etc, 5 times a week + your bound to go other places - so lets call it £10 a week for travelling expenses.
So lets take that £10 travelling expenses figure away from the £35.28 pence that you should have left in your pocket every week, = a total to spend on oneself of £25.28 pence.
Now lets presume you also need clothes - we live in a fashion world - so lets say £4 a week, is spent on some highly fashionable items?
This leaves a grand total of £21.28 per week.
Ok now lets say the £1.28 on the above figure is used to cover all other emergencies that may arise on a weekly basis?
Of course the cost of living may vary slightly throughout the country, which means you may pay lower rent or council tax, so you maybe better of?
So this means if you are a single person of average age, and you are prepared to live in a flat that only costs £50 a week, not make many phone calls, live like a hermit and eat cheaply, then you could have a whole £20 a week to spend on going out and those nice little luxury items in life. And if you didnít blow your £20 a week on all those cool new products that companies, keep trying to sell you, then you could save £1040 a year (£20 * 52 weeks), which you could obviously blow on a great holiday or maybe a car?
Sorry don't be silly, you couldn't afford to run a car, Tax / MOT / insurance / maintenance etc - no chance.
A friend of mine went to get car insurance, just 3rd party fire and theft for his 18 year old son, three thousand pound was the cheapest quote he could find, for a car that cost just 500 pound? So even if his minimum wage earning son, had managed to save his 20 quid a week, then he would have still been one thousand nine hundred and sixty pound short.
Anyway after spending a couple of weeks in your minimum wage opportunity, you would have saved enough to go and find a pension scheme that you could start to pay into. Thus leaving you with a few spare pounds, which you maybe able to invest, in some great new stock opportunities or how about getting yourself cable or satellite TV or maybe one of those fancy new, mobile phones.
You will be in debt faster than you can blink and then the systems got you, which of course, is the bloody point.
You will then spend the rest of you life trying to "work", your way out of that setup, which of course, once again, is the bloody point.
Am I work shy, NO, I just don't like the feeling that I am working for nothing, anyway you try writing this. I think it must be much easier to fit in, thus becoming a singularly skilled individual, who then finds a buyer?
We can't eat more than we produce, etc, I hear the cry, it's supply and demand don't you know, the economy would collapse if we paid this section of society more?
Of course, real life isn't like this, is it, JUST try it, I know lots of people who survive on minimum wage but after all, at least we are better off than most, so rejoice and be happy, at least we live in Great Britain and not Africa?
Sorry to generalise, I keep forgetting this eBook has now gone global?
So anyway, unless you live with nice parents, then this is the reality of minimum wage Britain, a carefully engineered plan, drafted by the state so as to get you to work for £20 a week, BUT only, if your careful with your ration book.
This is a proposal drawn up by the government for a newer harder working and fairer Britain?
To think some bastards at the top got together and actually worked out minimum wage to be what it is, is beyond incredulity.
I know some people who having been on minimum wage, have managed to work themselves into a debt and have had to drop of the governments radar, just so as to get by.
Average wage for a politician IN 2003 equaled over £55,000 a year - of taxpayers money.
John Prescott enough said?
When you see things like this, can anyone tell me why blue collar crime is seen as so dangerous, but investigating white collar crime is shied away from?
Low wages = people that don't move around a lot, they are economically tied to the area in which they work.
It also helps keep the lower orders from invading the nice places, that the rich live in.
It is once again, just another social control mechanism.
Low wages, it helps keep the poor in their place and in so many ways, literally.
The slaves said - give us freedom and we will work - there is a truism in this saying, that I believe, still rings true today?
Every time you go along with this system and agree with it, then try seeing your role in being part of the problem.
WELL IT'S TIME I WENT AND GOT MY STOCK OPTIONS TOGETHER AND GOT OUT OF THE MINIMUM WAGE MARKETPLACE. I'M MOVING TO SUNNIER SHORES, HAPPY DAYS.
OH GOD MY BROKER WANTS ME TO PAY A MARGIN CALL,
NOW WHERE DID I PUT THAT TWENTY QUID I MANAGED TO SAVE?
JUST REMEMBER IT'S ALL A MIND GAME AT THIS LEVEL.
All facts and figures, should as always, be put through the usual Dissemination process?
Note National minimum wage has now been
increased to £5 or something an hour, just remember it is all relative, because
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