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

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Housing Ombudsman

Housing Ombudsman Service
£130,095 per annum, negotiable based on experience.
The Housing Ombudsman Service allows colleagues to choose if they wish to work in the London office, from home or a hybrid of the two London (Greater)
Recuriter: Housing Ombudsman Service

SEND Engagement Facilitator

Essex County Council
£25821.00 - £30377.00 per annum
SEND Engagement FacilitatorFixed Term, Full Time£25,821 to £30,377 per annumLocation
Recuriter: Essex County Council

Senior Key Worker - Young Carers

Essex County Council
£25821.00 - £30377.00 per annum
Senior Key Worker - Young CarersPermanent, Full Time£25,821 to £30,377 per annumLocation
Recuriter: Essex County Council

CIPFA Trainee

Oxfordshire County Council
£31537 - £40777
You’re eager to build a career in public finance and committed to completing the CIPFA Level 7 Apprenticeship. You meet the eligibility criteria (including being under 22 years of age before studies commence, based on central government funding criteria Oxford
Recuriter: Oxfordshire County Council
Linkedin Banner