Paying the living wage would mean a £347 million boost to public finances

BIG savings; £347m; could be made by the public purse, if the North West's 571,000 low-paid workers received a pay rise and were paid the living wage, according to research published by the North West TUC to mark the end of Living Wage Week.

Economic modelling carried out for the national TUC by Howard Reed of Landman Economics suggests that the Treasury would receive an extra £223m from the increased tax and national insurance contributions (NIC) that would result from a North West,wide living wage boost.

Similarly, if low earners across the North West were to see their wages rise to current living wage rates; £7.45 an hour outside London; the research says that the Treasury would pay out £123m less in means tested benefits and tax credits across the region.

Commenting on the research, North West TUC Regional Secretary Lynn Collins said:- "Some 571,000 workers across the North West are being paid less than the living wage, and with in-work poverty growing, it's not hard to see why so many families are struggling to make household budgets stretch to cover the cost of everyday essentials.  The UK is in the midst of a living standards crisis, and while the economy is slowly starting to recover, ordinary people are a long way from feeling any benefit. Money is so tight that any unforeseen expenses; like a winter coat for the children or repairing a broken cooker; are forcing families to borrow just to keep their heads above water.   Many employers across the North West; who are beginning to see sense and are now paying the living wage; should soon reap the benefits with improved retention of staff, loyalty and production. Increasing the number of people across the North West who are paid at least the living wage would mean huge savings for the public purse in extra taxes paid and fewer benefits claimed.  ritain is crying out for a pay rise; and there are real benefits that would come from a nationwide pay boost for the UK's lowest paid workers."

Rhys Moore, Director of the Living Wage Foundation, also said:- "Employers who choose to pay the Living Wage are doing right by their workforce, but they're also saving the taxpayer money. Low pay is topped up by tax credits. This means that big, profitable companies that pay the minimum wage are being subsidised by taxpayers. The good news is that a growing number of employers in the North West are doing the right thing and signing up to pay the Living Wage."

Lifting workers across the UK out of poverty pay and onto the living wage would see £2.1bn raised through extra taxes and national insurance contributions, and £1.1bn less paid out in benefits and tax credits. This would see a net benefit to the Treasury of £3.2bn.

"Sadly the TUC has yet to explain how small businesses would fund this, and focusing their attentions on large businesses. Many small businesses are struggling to compete agenised the large internationals.  The TUC has not looked at this and thought it out.  Also the higher the lower wages is, it is still the low wage, and price go up, removing the benefit, but shutting more businesses down in the process." said one small business owner after hearing this statement by the North West TUC.

This is a very emotive subject and we want your views on this topic.  Please email them to:- news24@southportreporter.com.

Newsagents concealed illegal cigarettes

A RAID on a Liverpool newsagent's shop found illegal cigarettes hidden in a Health Lottery stand. And in another shop a false electriCity panel was used to conceal the cigarettes.

The raids were carried out by officers from the City Council's Alcohol and Tobacco Unit using a specially trained sniffer dog.

At S.A Mohammed's, in Aigburth Road, 4.85 kilograms of tobacco and 740 cigarettes worth a sale value of £1750, were found in a cardboard stand promoting the health lottery. 

At City News, in Smithdown Road, a total of 1920 cigarettes, with a retail value, of £720, were found hidden behind a false socket and fuse box. 

Both premises had previously had illegal cigarettes confiscated, but were suspected of continuing to trade in them.

Councillor Tim Moore, City council cabinet member, said:- "These 2 shops had gone to some lengths to conceal these cigarettes. They must have known full well that what they were doing was illegal.  Illicit cigarettes not only damage health but are a threat to legitimate businesses. We will do all we can to tackle this trade for the good of our communities."

Dr Paula Grey, Liverpool's Director of Public Health said:- "All tobacco products are harmful, whether they're bought legitimately from a retailer or illegally from unlicensed sellers. They both contain over 4,000 chemicals, at least 60 of which are cancer causing, contributing to our high levels of lung cancer, and other tobacco related diseases.  Added to this, illegal tobacco isn't regulated so its content and where it comes from are often unknown. The illegal tobacco trade also makes it easier for children to start smoking, and takes advantage of cash-strapped families."

The cigarettes and tobacco have been seized and a report will be submitted which may result in legal proceedings being instigated.