Report: A rising floor: The latest evidence on the National Living Wage and youth rates of the minimum wage

This Low Pay Commission report describes the impact of the National Living Wage and other minimum wage rates, including the latest evidence on the gains and the risks arising from a higher pay floor.

Key findings:

  • The Commission estimate that 8.5% of workers will be on one of the minimum wage rates from April 2017. This means up to 2.3 million workers will be covered, up from 2.0 million (7.3%) last year.
  • Comparing 2015 with 2016, there has been a small decrease in the number of employees across low-paying occupations.
  • There has been strong growth in the number of hours and employees in large workplaces. However, the number of hours and employees has decreased in micro workplaces over the past year.
  • The introduction of the NLW last year was accompanied by a ripple effect up the earnings distribution.