Narrowing the youth gap

Exploring the impact of changes to the minimum wage on the incidence of low pay among young people

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In the Autumn Statement last month, the Chancellor announced big changes to the minimum wage. Alongside the announcement that the adult-rate minimum wage (the ‘National Living Wage’, or NLW) will increase by 10 per cent in April 2024, there were two important changes relating to the minimum wage rates that apply to young people. First, … Continued

Giving with one hand …

Exploring the impact of minimum wage uprating in 2024 on living standards

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At this year’s Conservative Party Conference, the Chancellor announced that the minimum wage would rise to at least £11 next year, up from its current rate of £10.42. But he may have under-promised. Using the standard uprating methodology, we estimate that the new adult-rate minimum wage could be as high as £11.46 in April 2024 … Continued

Earnings Outlook Q2 2020

Back in lockdown

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As England enters its second lockdown the outlook for the labour market is as uncertain as at any point during the crisis (Wales and Northern Ireland are already in a second period of lockdown or tough restrictions, and restrictions in Scotland were increased a week ago). The story of recent weeks has been an accelerating … Continued

Labour market enforcement
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Labour market
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Low pay
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Living Wage

Under the wage floor

Exploring firms’ incentives to comply with the minimum wage

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This briefing note explores the incentives for firms to comply with the National Living Wage/National Minimum Wage (NLW/NMW). It documents the penalties that firms are subject to; estimates underpaying firms’ rate of detection; and shows that even if detection rates were significantly increased, they would need to go hand-in-hand with higher financial penalties to provide firms with a hard economic incentive to comply with the NLW/NMW.

Ain’t no minimum high enough

Minimum wage policy in the 2019 General Election

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Summary Minimum wage increases since 2015 delivered a £3bn pay boost to low-paid workers last year – highlighting the benefits of cross-party consensus over a more ambitious wage floor. Both main parties are right to propose plans for an even higher wage floor, but should proceed carefully, and be prepared to change course if needed. … Continued

Low Pay Britain 2019

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This is our ninth annual report on low pay. This edition focuses on the minimum wage, which recently turned 20. It analyses the extent to which the minimum wage has reduced the proportion of the working-age population in low pay. It also looks to the future, asking how fast the minimum wage can boost wages for the lowest earners while managing the inevitable risks to employment.

Low Pay Britain 2017

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Our annual look at low pay. In 2017 we found that the number in low hourly pay had fallen, driven by the higher minimum wage for those aged 25+. We also held focus groups with people in low pay, who highlighted several non-pay issues they faced at work, including a lack of control over working hours.

Low Pay Britain 2016

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This is our sixth annual report on the prevalence of low pay in Britain. It uses the latest data available (2015) to map out the scale of low pay and the groups that are most affected. It shows how this has changed over recent decades and looks at what the coming years might hold, particularly … Continued

The first 100 days: early evidence on the impact of the National Living Wage

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  In this briefing note, we combine official data and a bespoke survey to better understand employers’ initial reaction to the announcement and implementation of the National Living Wage and their plans for the future. We also consider the implications of the Brexit vote for the future trajectory of the NLW.  

Weighing up the wage floor: Employer responses to the National Living Wage

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The findings of this report confirm that a significant share of firms will not be affected by the National Living Wage (NLW), or will face only a small increase in their wage bill. At the same time, it is clear that for some employers, particularly those in low-paying sectors, the NLW will raise their labour costs considerably. Both the survey and the case study interviews … Continued

Social care
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Pay
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Living Wage

As if we cared: the costs and benefits of a living wage for social care workers

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This report is the culmination of a year-long investigation into pay and conditions in social care, and the first authoritative study of the costs and benefits of moving to a living wage for all care workers. The report argues that pervasive low pay across the sector and tight budget constraints facing care providers means that paying … Continued

Beyond the Bottom Line: The challenges and opportunities of a living wage

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Beyond the Bottom Line, a joint report from the Resolution Foundation and IPPR, presents the first full economic analysis of the living wage in the UK, including: modelling its potential impact on labour demand and considering the potential costs of living wages for employers; analysing which workers and families benefit most from the living wage; … Continued

Pay
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Living Wage

What price a living wage?

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Paying a living wage is affordable for big companies in UK banking, construction, computing and food production sectors, according to this new report jointly published by the think tanks Resolution Foundation and IPPR. This new analysis shows that the average increase in the wage bill for listed companies in these sectors would be about 1 … Continued

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