Labour market· Job quality and security· Low pay· Minimum wage· Living Wage Under the wage floor Exploring firms’ incentives to comply with the minimum wage 8 January 2020 by Lindsay Judge and Anna Stansbury 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. READ MORE
Labour market· Low pay· Pay· Minimum wage· Living Wage Ain’t no minimum high enough Minimum wage policy in the 2019 General Election 18 November 2019 by Nye Cominetti 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 READ MORE
Incomes· Jobs· Labour market· Job quality and security· Low pay· Pay Feel poor, work more Explaining the UK’s record employment 12 November 2019 by Torsten Bell and Laura Gardiner There is no bigger change to our economy over the past decade than the employment boom. We argue that this has been driven by the deep post-crisis income squeeze. This pushed up labour supply via more workers, and a pause in the long-term decline in working hours. READ MORE
Jobs· Earnings Outlook· Labour market· Low pay· Pay The Resolution Foundation Earnings Outlook Q2 2019 7 November 2019 by Nye Cominetti and Jack Leslie In our Earnings Outlook for 2019 Q2 we suggest that the UK’s 12 year long pay squeeze may be about to come to an end, just in time for the election. But for many groups, typical pay is still well below its previous peak, READ MORE
Labour market· Low pay· Pay· Minimum wage· Living Wage Low Pay Britain 2019 30 May 2019 by Nye Cominetti and Kathleen Henehan and Stephen Clarke 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. READ MORE
Earnings Outlook· Labour market· Low pay· Pay· Minimum wage The Resolution Foundation Earnings Outlook Q4 2018 30 March 2019 by Nye Cominetti Our quarterly earnings outlook, for Q4 2018. With the minimum wage now 20 years old, we chart its impact on low pay over two decades. We also look at the impact of the post-2016 increases, and prospects for the wage floor over the next few years. READ MORE
Labour market· Low pay· Minimum wage· Cities and regions Low pay in Greater Manchester: A report for the Greater Manchester Independent Prosperity Review 5 March 2019 by Conor D’Arcy and Laura Gardiner and Fahmida Rahman In this report, we provide an in-depth look at low pay in Greater Manchester. We explore who is in the low-paid workforce, the jobs they work in, their routes out of low pay, the dynamism of the local labour market and the role of employers. READ MORE
Jobs· Labour market· Job quality and security· Low pay· Pay Atypical approaches: Options to support workers with insecure incomes 21 January 2019 by Conor D’Arcy and Fahmida Rahman There has been much debate about the certainty of income that atypical work provides, and whether the rights of workers are being consistently upheld. This report explores these issues, looking beyond a minimum wage premium, at how other high-income countries have sought to reduce one-sided flexibility in the labour market. READ MORE
Low pay· Pay Low Pay Britain 2018 18 May 2018 by Conor D’Arcy Our annual look at low pay, for 2018. With low pay falling, we suggest policy makers should focus on three challenges: progression (low paid workers lack thereof), power (likewise), and the gender pay gap. READ MORE
Jobs· Labour market· Job quality and security· Low pay· Pay· Cities and regions ‘A-typical’ working day in Greater Manchester 25 October 2017 by Stephen Clarke Greater Manchester has experienced a growth in ‘a-typical’ work in recent years, with implications for pay and progression. In this briefing, we explore the labour market performance of Greater Manchester over recent years, comparing it to other city regions over time. READ MORE
Jobs· Low pay· Pay The Great Escape? Low pay and progression in the UK’s labour market 19 October 2017 by Conor D’Arcy and David Finch For most low-paid workers, poorly-paid positions are not acting as a first rung on the ladder: it is the only rung. Of all those low paid in 2006 by 2016 only one in six people managed to escape low pay. READ MORE
Low pay· Pay· Minimum wage· Living Wage Low Pay Britain 2017 12 October 2017 by Conor D’Arcy 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. READ MORE
Labour market· Productivity & industrial strategy· Low pay· Pay· Minimum wage Industrial strategies? Exploring responses to the National Living Wage in low-paying sectors 20 December 2016 by Conor D’Arcy This report provides another contribution to evidence on the impact of the National Living Wage to date. READ MORE
Low pay· Pay· Minimum wage· Living Wage Low Pay Britain 2016 18 October 2016 by Stephen Clarke and Conor D’Arcy 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 READ MORE
Social care· Labour market· Low pay· Pay· Minimum wage Rising to the challenge: early evidence on the introduction of the National Living Wage in the social care sector 30 August 2016 by Laura Gardiner While broadly welcomed by business, the introduction of the National Living Wage (NLW) – the new higher minimum wage for workers aged 25 and over – has sparked some concerns about affordability and prompted discussions around likely employment responses – especially in lower-paying sectors where the wage increase is set to bite hardest. It will … Continued READ MORE
Jobs· Labour market· Low pay· Skills· Social mobility Finding your routes: non-graduate pathways in the UK’s labour market 11 May 2016 by Conor D’Arcy and David Finch This report, commissioned by the Social Mobility and Child Poverty Commission, explores how poor career routes are holding back the ‘forgotten forty per cent’ of the workforce – mid-skilled workers with at least five A*-C GCSEs but without a university education. READ MORE
Labour market· Low pay· Pay· Minimum wage· Cities and regions Paved with gold? Low pay and the National Living Wage in Britain’s cities 4 January 2016 by Adam Corlett The National Living Wage (NLW) will come into effect in April and is set to rise considerably over the rest of the parliament. This will mean a welcome pay rise for six million employees, but as an ambitious labour market policy it will present challenges. This short briefing focuses on the impact of the NLW … Continued READ MORE
Labour market· Low pay· Pay· Minimum wage Care to pay? Meeting the challenge of paying the National Living Wage in social care 12 November 2015 by Laura Gardiner The announcement of the National Living Wage is extremely welcome news for care workers, spelling a pay rise for up to 1 million of them by 2020 and having a significant impact on household budgets. Other recent developments have the potential to spur further improvements for a workforce that is poorly paid and faces casualised … Continued READ MORE
Low pay· Pay Low Pay Britain 2015 5 October 2015 by Adam Corlett and Laura Gardiner This is our fifth annual report on the prevalence of low pay in Britain. It uses the latest data available (2014) 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 READ MORE
Low pay· Pay· Minimum wage Taking up the floor: exploring the impact of the National Living Wage on employers 15 September 2015 by Conor D’Arcy and Adam Corlett On average across the 6 million people affected, the NLW is expected to add £760 annually to pre-tax wages. In total, our analysis finds that £4.5 billion will be added to the wage bill of British firms in 2020. The question we turn to in this report – the second in a series investigating the … Continued READ MORE
Low pay· Pay· Minimum wage Higher ground: who gains from the National Living Wage? 2 September 2015 by Conor D’Arcy and Adam Corlett and Laura Gardiner In this note, the first in a series looking at the opportunities and challenges associated with the National Living Wage, we focus specifically on who stands to gain. Which groups of workers will benefit, and by how much? And how does this wage legislation interact with the tax and benefits system, and therefore household incomes? … Continued READ MORE
Low pay· Pay· Minimum wage Analysing the National Living Wage: Impact and implications for Britain’s low pay challenge 10 July 2015 by Conor D’Arcy and Gavin Kelly The most eye-catching announcement in the Summer Budget was the National Living Wage (NLW). National Minimum Wage workers aged 25 and over will, from April 2016, receive a premium on top of the current legal wage floor, raising their hourly earnings from £6.70 to £7.20. Thereafter, the NLW is expected to rise steadily, surpassing £9 … Continued READ MORE
Social care· Low pay· Pay· Minimum wage The scale of minimum wage underpayment in social care 9 February 2015 by Laura Gardiner There is increasing recognition that a better deal for the workforce will be essential to the quality and sustainability of social care provision in the UK, but so far there has been scant evidence as to the scale of investment needed. The Resolution Foundation is currently undertaking a major investigation into the costs of improving … Continued READ MORE
Labour market· Low pay· Pay· Minimum wage Escape Plan: Understanding who progresses from low pay and who gets stuck 11 November 2014 by Conor D’Arcy and Alex Hurrell Our findings highlight that employees can move into higher paying roles but escaping completely from low pay is more difficult. Overall, the evidence presented in the report suggests that employers and government do have scope to develop the progression prospects of low paid staff. While much is already being done, there are particular groups of people … Continued READ MORE
Low pay· Pay· Minimum wage Turning Point? The minimum wage in 2014 and beyond 1 October 2014 by Matthew Whittaker and Adam Corlett With the National Minimum Wage (NMW) rising on October 1st, this briefing note provides some background by setting out the evolution of the wage since its introduction in April 1999. It looks at the rate’s real value over the intervening period, and its relationship with median pay. It also considers the number of people affected by the NMW … Continued READ MORE
