Earnings Outlook
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Labour market
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Pay
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Minimum wage

Earnings Outlook Q1 2019

In our latest quarterly Earnings Outlook, we focus on two of the biggest changes to the UK labour market over the past two decades – rising self-employment (from 3.4 million in 1999 to 5 million today) and the introduction and ramping up of the legal minimum wage (from £3.60 in 1999 to £8.21 today) – … Continued

Labour market
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Low pay
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Pay
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Minimum wage
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Living Wage

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
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Pay
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Minimum wage
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Living Wage

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.

Jobs
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Labour market
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Quality and security
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Minimum wage

The minimum required? Minimum wages and the self-employed

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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

Low pay
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Pay
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Minimum wage
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Living Wage

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

Social care
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Labour market
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Low pay
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Pay
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Minimum wage

Rising to the challenge: early evidence on the introduction of the National Living Wage in the social care sector

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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

Labour market
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Pay
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Minimum wage
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Living Wage

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.  

Firms
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Labour market
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Minimum wage
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Living Wage

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

Labour market
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Low pay
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Pay
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Minimum wage
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Cities and regions

Paved with gold? Low pay and the National Living Wage in Britain’s cities

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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

Labour market
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Low pay
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Pay
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Minimum wage

Care to pay? Meeting the challenge of paying the National Living Wage in social care

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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

Low pay
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Pay
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Minimum wage

Higher ground: who gains from the National Living Wage?

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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

Low pay
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Pay
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Minimum wage

Analysing the National Living Wage: Impact and implications for Britain’s low pay challenge

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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

Social care
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Low pay
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Pay
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Minimum wage

The scale of minimum wage underpayment in social care

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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

Labour market
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Low pay
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Pay
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Minimum wage

Escape Plan: Understanding who progresses from low pay and who gets stuck

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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

Low pay
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Pay
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Minimum wage

Turning Point? The minimum wage in 2014 and beyond

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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

Low pay
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Pay
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Minimum wage

More than a minimum: The review of the minimum wage – Final report

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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

Low pay
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Pay
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Minimum wage

Minimum Wage Act II

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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

Labour market
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Low pay
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Pay
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Minimum wage

Starting out or getting stuck? An analysis of who gets trapped in low paid work—and who escapes

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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

Low pay
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Pay
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Minimum wage

Fifteen years later: A discussion paper on the future of the UK National Minimum Wage and Low Pay Commission

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In 15 years the UK National Minimum Wage (NMW) has evolved from a bold and experimental labour market intervention into a permanent and generally uncontroversial tool of economic policy. The Low Pay Commission (LPC), enshrined in law in 1998 to recommend the rate of the NMW, has won widespread support, with its decisions endorsed by … Continued

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