The Resolution Foundation, a not for profit organisation has produced a report entitled “The First 100 days”. The report looks at the impact the National Living Wage (NLW) has had on employees.
In September 2015, the Foundation predicted that around 4.5 million employees would benefit from the introduction of the NLW with some 6 million workers gaining a pre-tax average of £760 by 2020.
Research indicates that 35 per cent of organisations surveyed reported that the NLW had increased their wage bill this year with:
21% saying it had been increased “to a small extent”, 8 per cent “to some extent” and 6 per cent “to a large extent”.The question is – how have employers responded to the introduction of the NLW?
“Some noted that they had started to pass through wage costs in the form of higher prices, though they expected that to be a gradual process. Interestingly, despite the costs involved, some firms said that they had extended the NLW to employees aged under-25.”
“Just 8% of employers are cutting employee perks such as paid breaks, overtime and holiday pay to fund pay rises resulting from the national living wage (NLW).”
Comment
This is a very interesting report coming with only 3 months from the introduction of the NLW. It will be interesting to the impact of its introduction in a years’ time.
