William Eichler 05 January 2016

Think tank warns poorer areas will struggle with new Living Wage

Implementing the new National Living Wage (NLW) will be toughest in lower-paying city regions, according to a new report by the Resolution Foundation.

The Foundation’s analysis shows that introducing the NLW will be particularly difficult in poorer areas and will prove a key first test of new devolved economic leadership arrangements.

By 2020, six million employees (23% of the workforce) will be affected by the NLW, but a far higher share of staff will see their pay increase in many lower-paying cities across the country.

A high proportion of employees in, for example, Sheffield (28%), Nottingham (27%) and Birmingham (26%), will benefit from the NLW.

In contrast, in higher-paying areas, such as Oxford (13%), London (14%) and Cambridge (15%), a relatively low proportion of employees will be affected.

The Foundation emphasises that bringing in the NLW will be a challenge and it urges the Government and local authorities to prioritise minimising job losses, and ensuring that large groups of workers do not get stuck earning only the legal minimum.

Adam Corlett, economic analyst at the Resolution Foundation, said: ‘The new National Living Wage will have a huge impact on low pay, particularly towards the end of the parliament as it approaches £9 an hour.

‘But implementing the new wage floor will be challenging, particularly in cities like Sheffield where wages tend to be lower. National, local and new regional politicians must work closely with employers to ensure that the National Living Wage is a success, particularly in low paying sectors.’

SIGN UP
For your free daily news bulletin
Highways jobs

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Residential Worker

Essex County Council
£27935.00 - £35344.00 per annum + includes allowance
Residential WorkerPermanent, Full Time£27,935 - £35,344 per annum (including allowance)Location
Recuriter: Essex County Council

Programme Manager

Local Government & Social Care Ombudsman
£64,582-£70,591 (Coventry & York), £69,204-£75,222 (London)
Every year, the Local Government and Social Care Ombudsman helps thousands of people who have been let down by public services Hybrid working – allocated to offices in Coventry, York or London
Recuriter: Local Government & Social Care Ombudsman

Streetwork Inspector

Royal Borough of Greenwich
£41,113 to £43,680 including London Weighting
Communities, Environment, and Central have a vacancy in its Network Management Division Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Product Manager

Royal Borough of Greenwich
PO5 - £52,194 to £55,323.
Royal Greenwich is a vibrant borough, with a rich history and diverse community. Doncaster, South Yorkshire
Recuriter: Royal Borough of Greenwich
Linkedin Banner