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
Earnings Outlook· Labour market· Pay· Minimum wage Earnings Outlook Q2 2019 29 July 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. However, we also note that for many groups, typical pay is still well below its previous peak, and that although we will soon hit … Continued 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
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
Jobs· Labour market· Job quality and security· Minimum wage The minimum required? Minimum wages and the self-employed 4 July 2017 by Conor D’Arcy The minimum wage revolutionised the lower end of the UK’s labour market, protecting employees from exploitation. But the self-employed – now one in seven of the workforce – are not entitled to the minimum wage. With growing concerns over their earnings and conditions, particularly in the so-called gig economy, extending the minimum wage to some … Continued 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
Labour market· Pay· Minimum wage· Living Wage The first 100 days: early evidence on the impact of the National Living Wage 11 July 2016 by Conor D’Arcy and Matthew Whittaker 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. READ MORE
Firms· Labour market· Minimum wage· Living Wage Weighing up the wage floor: Employer responses to the National Living Wage 24 February 2016 by Conor D’Arcy and Gerwyn Davies 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 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· 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
Low pay· Pay· Minimum wage More than a minimum: The review of the minimum wage – Final report 12 March 2014 by James Plunkett and Alex Hurrell and Conor D’Arcy The final report of the Resolution Foundation’s review of the future of the National Minimum Wage. The review has worked for the past nine months under the chairmanship of Professor Sir George Bain, the founding chair of the Low Pay Commission, exploring whether the minimum wage and its supporting architecture could do more to tackle … Continued READ MORE
Low pay· Pay· Minimum wage Minimum Wage Act II 21 February 2014 by James Plunkett and Conor D’Arcy and Tony Wilson The national minimum wage is no longer strong enough to tackle the country’s low pay problem and the policy will need to be reformed if it is to repeat the successes of its first 15 years. Professor Sir George Bain, the founding chair of the Low Pay Commission which recommends the rate of the minimum … Continued READ MORE
Labour market· Low pay· Pay· Minimum wage Starting out or getting stuck? An analysis of who gets trapped in low paid work—and who escapes 27 November 2013 by Alex Hurrell Almost three-quarters of Britain’s workers who were on low pay in 2002 failed to escape from it over the course of the following decade. Both low pay and social mobility are recognised as serious concerns in Britain but much less attention has been given to how easy or hard it is for someone to work their … Continued READ MORE
Low pay· Pay· Minimum wage Minimum stay: Understanding how long people remain on the minimum wage 26 October 2013 by Conor D’Arcy and Alex Hurrell Britain’s growing minimum wage workforce includes 320,000 people who have been trapped on the lowest rung of the pay ladder for five years or more. Minimum Stay shows that 17 per cent of all those currently earning the minimum wage or up to 25p an hour above it, have only ever held jobs at this pay level … Continued READ MORE
