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

Educational Psychologist - Main Grade

Essex County Council
£43483.0000 - £63394.0000 per annum
Educational Psychologist - Main GradePermanent, Full Time and Part TimeSoulbury Psychologists Scale A from 3 to 8 plus SPA opportunityLocation
Recuriter: Essex County Council

Service Desk Analysts

Durham County Council
£27,274 to £29,542 p.a. pro rata for part time post (Grade 5)
A vacancy has arisen within Digital Services for two Service Desk Analysts to provide ICT support to corporate and external customers and schools in a Durham
Recuriter: Durham County Council

Crematorium Attendant

Durham County Council
£29,071 - £32,046
 Part time post 14.5 hours Are you a compassionate, professional individual who can provide excellent service during some of life's most difficult mo Durham
Recuriter: Durham County Council

Communication Support Worker

Durham County Council
£33,673 - £37,563
Temporary Contract review will take place at end of July 2027. Part time - 8 hours per week Term time only plus 2 weeks Required to start January 2027 Durham
Recuriter: Durham County Council

Teaching Assistant

Durham County Council
£26,016- £26,847 (Pro Rata)
Temporary Contract until August 31st 2027 Full Time- Term Time + 2 weeks Start date to be agreed with Headteacher   Framwellgate Moor Primary is an Ou Durham
Recuriter: Durham County Council
Linkedin Banner