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Low-paid workers' wages to rise four times faster than average earnings - study

Published 27/03/2016

Staff on the minimum wage will receive a 50p-an-hour increase on April 1
Staff on the minimum wage will receive a 50p-an-hour increase on April 1

The wages of low-paid workers will increase four times faster than average earnings this year, according to a new study.

Staff on the minimum wage will receive a 50p-an-hour increase on April 1 when the new national living wage of £7.20 for adults comes into force.

A study by the Resolution Foundation found that the new rate, on top of a 20p-an-hour rise in the national minimum wage last October, has led to a 10.8% increase for low-paid workers in the past year, compared with the average of 2.7%.

The trend will continue, with the living wage set to reach £9 an hour by 2020, it was predicted.

Torsten Bell, director of the Resolution Foundation, said: "The national living wage is a bold policy.

"It is the right thing to do given the scale of low pay in UK, which is one of the great challenges of our time."

A Government spokesman said: "The new national living wage (NLW) is an essential part of moving to a higher wage, lower tax, lower welfare society, where work always pays and the majority of households are better off.

"The NLW will benefit hundreds of thousands of care workers for the work they do and we are offering more financial support to councils to invest in that work - with access to up to £3.5 billion to spend on social care."

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From Belfast Telegraph