The current cost of living is pushing more people into poverty, with almost 68% of low income...
Minimum wage
-
04/09/2013
4.8 million people earning less than ‘living wage’
The economic downturn has pushed the earnings of a further 1.4 million employees below the level of the 'living wage' since 2009, according to a new report from the Resolution Foundation think tank.
The living wage is the rate of pay deemed by the public as necessary for a basic standard of living. At the point in time covered by the report (April 2012) it was calculated to be £8.30 an hour in London and £7.20 elsewhere.
Category: Reports -
05/07/2013
Future of national minimum wage
A sensible national minimum wage policy can boost pay without harming unemployment, and without large offsetting declines in working hours or non-wage benefits, according to a new discussion paper from the Resolution Foundation think-tank. The paper's authors review the lessons learned since the national minimum wage was introduced in the UK fifteen years ago, and look at its future role in tackling low pay.
Category: Reports -
15/04/2013
Minimum wage increases by 1.9 per cent
The national minimum wage for adults will rise by 12p from October 2013 to £6.31 an hour, ministers have announced. This represents a cash increase of 1.9 per cent – but a real-terms cut when compared with current retail price inflation of 3.2 per cent.
The minimum rate for young people aged 18-20 will rise by even less, just 5p (1 per cent), to £5.03 an hour. For those aged 16-17 it will rise by 4p (1.1 per cent) to £3.72.
Ministers did, however, reject a recommendation from the official Low Pay Commission that the rate for apprentices should be frozen. The apprentice rate will instead increase by 3p (1.1 per cent) to £2.68 an hour.
Category: News stories -
15/11/2012
National minimum wage has reduced wage inequality
The national minimum wage (NMW) has played a significant role in reducing wage inequality – at least in the bottom half of the wage distribution – according to researchers at the London School of Economics who looked at trends in wage inequality between 1998 (when the NMW was introduced) and 2010.
Category: Reports -
07/11/2012
Earnings gap widens since 1980s
The top 1 per cent of earners enjoyed a real-terms increase of 117 per cent over the 25 years between 1986 and 2011, according to a new official analysis – compared with the average of 62 per cent, and with just 47 per cent for those in the lowest decile group.
Category: Reports -
05/11/2012
‘Living wage’ increased to £7.45 an hour
Updated figures have been produced for the 'living wage' – the minimum level of pay needed to provide an adequate standard of living for an average household. The Centre for Research in Social Policy calculates the new rate outside London at £7.45 an hour – an increase of 25 pence over the previous rate of £7.20 an hour. This compares with the national minimum wage hourly rate for adults of £6.19.
The calculation establishes a minimum income standard, based on the cost of items chosen by the public as being essential for a decent standard of living. Amounts are then added for rent, council tax and childcare costs. The calculation is done for each of nine different household types, averaged, and finally converted into a minimum wage requirement - assuming all adult family members work full time.
Category: Reports -
29/10/2012
Nearly 5 million workers paid below 'living wage'
As many as one in five workers – some 4.82 million people – are paid less than a 'living wage', according to a new analysis.
The study is published by a leading accountancy firm that supports the living wage for its own employees.
A living wage was calculated to be £8.30 an hour in London in 2011 (£7.20 outside), based on what was needed by the average household type to cover basic living costs. This compares with the current statutory minimum wage of £6.08. An uprated living wage calculation for 2012 is expected to be published soon.
Category: Reports -
16/10/2012
Benefits of London ‘living wage’
Paying a 'living wage' has a range of potential benefits to workers, companies and the government, according to an academic study commissioned by campaigners. The study looked at the experiences of workers and companies in London where the living wage has been introduced.
The London living wage was calculated to be £8.30 an hour in 2011, based on what was needed by the average household type to cover basic living costs. This compares with the current statutory minimum wage of £6.08.
Category: Reports -
20/09/2012
Link between in-work poverty and low pay is complex
There is no simple link between in-work poverty and low pay in European countries, finds a study funded by the European Commission. Tackling in-work poverty is therefore not as straightforward as simply raising minimum wages, it concludes.
The study looked at the variation in in-work poverty across European countries and over time, using data from EU-SILC.
Category: Reports -
20/08/2012
Living Wage (Scotland) Bill – consultation begins
An MSP has begun consultation on a proposed Bill to require private sector employees working on public sector contracts to be paid the ‘living wage’. The Bill would also require the Scottish Government to prepare and report to the Scottish Parliament on a strategic plan to promote the living wage.
John Park’s proposal aims to ensure that businesses benefiting from public sector contracts pay a living wage to employees engaged in the relevant contract. The living wage is defined in the consultation document as £7.20 per hour, based on the costs of a range of goods and services representing the minimum income standard for people in different household types across the UK.
Category: News stories
