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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Adults Social Worker - West Essex (Expression of Interest)

Essex County Council
£36124 - £51834 per annum + Flexible Working, Hybrid
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in West E England, Essex, Harlow
Recuriter: Essex County Council

Team Manager - Care Leavers Team

Nottingham City Council
£53,051 - £56,293
As Team Manager for the Care Leavers Team, you will lead and support a dedicated team working with young people transitioning from care into adulthood Nottingham, Nottinghamshire
Recuriter: Nottingham City Council

Technician

Essex County Council
£32086.00 - £37748.00 per annum
TechnicianPermanent, Full Time£32,086 up to £37,748 per annumLocation
Recuriter: Essex County Council

Communications Officer

Essex County Council
£37226.7100 - £42110.5400 per annum
Maldon District Council is working in partnership with Essex Shared Services to support the role of Communications Officer, a full-time position offe England, Essex, Maldon
Recuriter: Essex County Council
Linkedin Banner