Report: The New Going Rate: The impact of the National Living Wage on UK employers

Since April 2016 the introduction of the National Living Wage will push hourly wages towards £9 by the end of the decade moving employees away from low productivity and low wages towards a future where productivity, skills and pay are higher. The challenge and opportunity for UK employers is also huge.

In this report from the Social Market Foundation the implications are analysed.

Key findings:

The Low Pay Commission estimates that 3.3 million workers will be affected by the NLW by 2020.
Most (nearly 1.8 million) will be affected in the first year of the policy.
SMF’s analysis suggests that the NLW will affect private sector employees more severely than public sector workers.
The more severely affected sectors will include accommodation and food; arts, entertainment and recreation and wholesale and retail – each of whom currently have half of workers paid below NLW.
Severely affected workplaces will find it more difficult to absorb the costs of higher hourly wages.
The NLW presents an opportunity to address established shortcomings in human resource management.

Download SMF’s report: The New Going Rate – The impact of the National Living Wage on UK employees