It balances wages of low paid workers against employment prospects if the rate was set too high.
Effectively, for low paid service style jobs, the incentive is to simply abolish the full time job.
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School cleaners, cooks and low paid clerical staff are to get a windfall of hundreds of pounds.
They can be entrepreneurial, creative and full of opportunity but they can also be very low paid.
Mr Burnham praised his party leader Ed Miliband's proposal to reward firms for paying low paid workers more than the minimum wage.
Low paid workers have been most affected by this: for them, a doubling of unemployment means a real wage squeeze of 17%.
George Osborne unleashed a fatwa to make teachers and nurses, coppers and soldiers, the low paid and jobless pay for his Treasury catastrophe.
Ed Miliband told The Guardian on Saturday he wanted to offer tax breaks to persuade companies to pay more to low paid workers.
They are imposing a 1% pay norm essentially across the board, making no account if you are low paid, middle paid or higher paid.
This pushes down the wages of the low paid even further.
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So, we tax those bad things and then at the same time we reduce the taxation of good things, like the incomes of the low paid.
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Because the less academically inclined can too easily fall into low paid, unskilled jobs- or languish on the dole queue - vocational training would be revamped.
In a global economy, U.S. has been losing manufacturing jobs for decades, which is bad, but is not so terrible as most manufacturing jobs are low paid.
The TUC survey also revealed significant numbers took low paid jobs in call centres and care homes, but that only 7% of these belonged to a union.
He accused Mr Osborne of "reneging on a promise to low paid workers" who he said were under the impression that they would be receiving a pay increase.
What is left is the low paid and unskilled on one end of the spectrum, and the highly skilled and highly paid on the other end of the spectrum.
Mr Clegg said the coalition had helped low paid families by taking many of them out of income tax and increasing the number of pre-school children getting free childcare.
The purpose, says IDS, is to prevent people from staying jobless because they fear that getting a low paid job will force them to give up their benefits altogether.
He said the package would see a fairer income tax system which would "lift the low paid out of tax and bring about a tax break for middle earners".
Education Minister John O'Dowd said the payments reflected the decision across the public sector to provide additional payments to low paid staff at a time when a pay freeze was effective.
"We have been left with no option but to take industrial action which is the only thing we can to safeguard our pension for the future for low paid workers, " he said.
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Two thousand low paid staff in grammar and grant maintained integrated schools who did not get the original payment will also receive the payment from the department - they will get a double payment.
So far only one Lib Dem MP, Bob Russell, has publicly suggested he might vote against the Budget, as the party had campaigned against VAT increases at the election because "the low paid disproportionately pay more".
The Mid Scotland and Fife MSP said the debate was appropriate on International Women's Day , as low pay had a disproportionate impact on women, with some two thirds of low paid jobs held by women.
When key workers fall ill or get afraid and low paid workers simply do not turn up for work food stores will have empty shelves, close and be looted, gas pumps will be dry and prescription drugs not delivered.
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But even low paid work would reconnect the unemployed to the labour market (many European countries have some version of this, my native UK for example insists that the long term unemployed should go work for nothing except their welfare benefits).
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And he said the Budget had taken "difficult decisions in an honest and fair way and with the clear stamp of Liberal Democrat values running through it, " citing examples including the restoration of the pensions and earnings link and the tax boost for the low paid.
In other cases staff do not join existing schemes, typically because they are low paid and fear they cannot afford to contribute, or because they work in industries such as catering where there is a high turnover of staff who stay in jobs for only short periods of time.
In very simplistic terms this put a pressure to keep low-paid wages low.
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