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

Highways Inspection Officer

The Royal Borough of Windsor & Maidenhead
£32,962 - £36,791pa
We have an exciting opportunity for a Highways Inspection Officer to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Driver

North Yorkshire Council
£12.85 - £13.47 per hour
The team comprises approximately 350 drivers and passenger assistants that operate at locations throughout North Yorkshire. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Passenger Assistant Medical

North Yorkshire Council
£27,254- £29,064 pro rata per annum
We are looking for caring, flexible, and committed people to help us provide this transport. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Social Worker - Children's Assessment and Safeguarding

North East Lincolnshire Council
Salary from ASYE level £36,363 up to £46,142
We’re looking for inspirational social workers North East Lincolnshire
Recuriter: North East Lincolnshire Council

Child Care Officer - Children's Homes and Supported Accommodation

North East Lincolnshire Council
£28,142 PLUS additional allowances for weekend working
Can you make a house feel like a home in a team that feels like a family? North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner