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

Social Worker – Family Assessment & Support Team (FAST)

North Yorkshire Council
£38,220 - £42,839
Our Family Assessment and Support Teams work with children, young people and the families who are Children in Need and in need of Protection. Ripon, North Yorkshire
Recuriter: North Yorkshire Council

Transformation Lead

The Royal Borough of Kensington & Chelsea Council
£53076 - £54076 per annum
Bring your children's social care knowledge to lead digital transformation and help shape better systems, processes and services for practitioners, ch England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Referral Taker

Gloucestershire County Council
£28,142 - £29,540 per annum
Are you an experienced Adult Social Care Administrator looking for an opportunity to develop your career? Gloucestershire
Recuriter: Gloucestershire County Council

Floor Layer

Durham County Council
£36,040 p.a. (Made up of £24,027 salary plus £12,013 p.a Interim Operational Allowance)
Durham County Council have an exciting opportunity for the role of a permanent Floor Layer working within Corporate Property and Land, Strategic Facil Durham
Recuriter: Durham County Council

Headteacher

Durham County Council
£67,898 to £78,702
Permanent Contract - Full Time Required to start January 2027 N.O.R. 187 plus nursery (group 2).   The Governors seek to appoint a committed, experien Peterlee
Recuriter: Durham County Council
Linkedin Banner