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

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 by April 2020. This article considers this announcement and some of the important implications for the labour market and public policy. It does not focus on the changes to tax credits and benefits which we’ve looked at elsewhere.