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

Revenues and Recovery Manager - Braintree District Council

Essex County Council
£48945.0000 - £53082.0000 per annum
Revenues and Recovery Manager - Braintree District Council Full-Time, Permanent 37 Hours per Week £48,945 - £53,082 per annumClosing Date
Recuriter: Essex County Council

Part Time Digital Skills Tutor

Essex County Council
£15 - £15.74 per hour
Part Time Digital Skills TutorPermanent, Part Time£30,377 per annum, full time equivalent / equal to £15.74 per hourLocation
Recuriter: Essex County Council

Head of Regeneration and Growth

Cherwell District Council
£68,930.00 - £73,320.50 per annum
We need someone with experience, drive and commitment to lead and manage the service. Banbury, Oxfordshire
Recuriter: Cherwell District Council

Passenger Assistant

North Yorkshire Council
£24,796 - £25,989 per annum pro rata
They are a team of over 300 drivers and passenger assistants that operate at locations throughout North Yorkshire. North Yorkshire
Recuriter: North Yorkshire Council

Lead Lawyer - Housing - WMF2443e

Westmorland and Furness Council
£51,356 - £52,413
A great opportunity has arisen at Westmorland and Furness Council within our Legal Team for a Lead Lawyer to support on the Council’s Housing work. Cumbria / Various
Recuriter: Westmorland and Furness Council
Linkedin Banner