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

Town Clerk

Biggleswade Town Council
£74,454 - £89,081
Biggleswade Town Council is looking to appoint a highly motivated and forward-thinking Town Clerk, to drive its services forward. Biggleswade
Recuriter: Biggleswade Town Council

Part Time Enforcement Officer Trading Standards

Essex County Council
£26601.00 - £31295.00 per annum + + 26 Days Leave & Local Gov Pension
Part Time Enforcement Officer Trading Standards (Tobacco and Vapes)Fixed Term - 2.5 years duration, Part Time - 20 to 30 Hours Per Week, Monday to Fri England, Essex, Chelmsford
Recuriter: Essex County Council

Administration Officer (Finance) - Braintree District Council

Essex County Council
Up to £13.7900 per hour
Administration Officer (Finance) £13.79 PAYE / £17.69 Umbrella Braintree, EssexFull-Time, Temporary 3 Months Contract 37 Hours per Week Closing Date
Recuriter: Essex County Council

Enforcement Officer Trading Standards (Tobacco and Vapes)

Essex County Council
£26601.00 - £31295.00 per annum + +26 Days Leave & Local Gov Pension
Enforcement Officer Trading Standards (Tobacco and Vapes)Fixed Term - 2.5 years duration, Full Time - 37 Hours Per Week, Monday to FridayUp to £31,295 England, Essex, Chelmsford
Recuriter: Essex County Council

Community Support Worker - Young People with Disabilities Team

Essex County Council
£25395.00 - £32131.00 per annum + + 26 Days Leave & Local Gov Pension
Community Support Worker - Young People with Disabilities Team - Colchester (North Quadrant)Permanent, Full Time£25,395 to £32,131 Per AnnumLocation
Recuriter: Essex County Council
Linkedin Banner