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 Leader – Traffic Network Management

Hounslow London Borough Council
£52,194 – £57,402
We’d love you to join us at the London Borough of Hounslow! Hounslow (City/Town), London (Greater)
Recuriter: Hounslow London Borough Council

Director of Young People and Opportunities

Newham London Borough Council
£98,994 - £120,507
A defining role for young people in Newham Newham, London (Greater)
Recuriter: Newham London Borough Council

Building Compliance & Reactive Works Manager

East Devon District Council
£36,363 - £42,839
We have an exciting opportunity for a Building Compliance & Reactive Works Manager to join our Buildings and Facilities Management Team. Devon
Recuriter: East Devon District Council

Programme Director – Local Government Reorganisation

Staffordshire County Council
£Competitive
Lead one of the most significant local government transformation programmes in England! Staffordshire / Stoke on Trent
Recuriter: Staffordshire County Council

Executive Director – Place and Prosperity

South Derbyshire District Council
£106,484 up to £115,687 plus an essential car user allowance is also paid.
We are seeking an exceptional Executive Director to help shape the future of South Derbyshire at a pivotal moment in its history. Swadlincote, Derbyshire / Agile
Recuriter: South Derbyshire District Council
Linkedin Banner