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

Team Co-ordinator

Local Government & Social Care Ombudsman
£30,253 - £36,117 per annum
For over 50 years we have been the voice of the public Hybrid working – allocated to offices in Coventry or York
Recuriter: Local Government & Social Care Ombudsman

Children and Young People with Disabilities Support Worker

Essex County Council
£26284.00 - £33256.00 per annum + + 26 Days Leave & Local Gov Pension
Children and Young People with Disabilities Support WorkerPermanent, Full Time£26.284 to £33,256 per annumLocation
Recuriter: Essex County Council

Information Governance Assistant - 18 month FTC

Essex County Council
£25959.00 - £28621.00 per annum + + 26 Days Leave & Local Gov Pension
Information Governance AssistantFixed Term, Full Time£25,959 to £28,621 per annumLocation
Recuriter: Essex County Council

Housing Officer- Income Recovery - WMF2881e

Westmorland and Furness Council
£36,363- £37,280
Following an exciting restructure of our Housing Team, we are delighted to offer several new opportunities Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Community Learning and Skills Tutor - ESOL WMF2887e

Westmorland and Furness Council
£36,363 - £37,280 (pro rata)
This is an exciting role which will involve delivering both accredited and non-accredited ESOL courses at various levels. Carlisle, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner