Minimum wage increase does nothing for low-wage workers and beneficiaries – Auckland Action Against Poverty

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The National governmentโ€™s increase in the minimum wage by 50 cents to $15.75 an hour will not change the living standards of unemployed and low-wage workers struggling with rent and food.

โ€œWith the costs of living increasing, a low wage economy, and welfare reforms which have caused increased poverty, this wage increase is an insult,โ€ says AAAP spokerperson Vanessa Cole.

โ€œUnemployment and competition for work enables employers to continue to pay poverty wages with legislative support from the government.

โ€œYet the government continue to punish beneficiaries and unemployed workers, blaming them for the poverty the wealthy create.

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โ€œBeneficiaries are being forced by Work and Income into low-paid, casual and temporary work which force them into a poverty trap between low benefit payments and low wages.

โ€œIf we assume people are in full-time employment, this increase will get them $640.00 a week.

โ€œIn Auckland, where average rents are now over $500, this increase will do little for those struggling to pay rent and basic necessities.

โ€œThe calculated living wage is $19.80, with Aucklandโ€™s living wage even higher. This increase does not even come close to the amount needed to live with dignity.

โ€œAAAP supports a progressive UBI, a living wage for all workers, an increase in benefit payments and an end to the war being waged on the poor.