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

Specialist Social Worker

North Yorkshire Council
£44,253 up to £48,738
You will be part of a small and committed team that is focused in the fields of child sexual exploitation, criminal exploitation, Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Children and Families Worker

North Yorkshire Council
£32,578 to £35,570 per annum
Early Help is part of North Yorkshire Council’s Children & Families Service where we work alongside children Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Specialist Social Worker

North Yorkshire Council
£44,253 to £48,738 per annum
You will be part of a small and committed team that is focused in the fields of child sexual exploitation, criminal exploitation Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Social Worker

North Yorkshire Council
£39,481 to £44,253 per annum
If you are looking for a role where your expertise will be respected, your development actively supported Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner