You are here: Home - Saving & Banking - News -

New National Living Wage: who will get the biggest pay rise?

0
Written by:
30/03/2016
People in Torridge, Devon will be the biggest winners of the new National Living Wage (NLW) coming into force on Friday, according to a report.

One in three (35%) workers in Torridge are set for a pay rise as a result of the NLW, almost double the proportion across Britain (18%).

Under the NLW, all employees aged 25 and over will see their minimum pay rise to £7.20 an hour.

Other NLW hotspots include Rossendale in Lancashire, where 33% of employees are set for a pay rise, Woking in Surrey and Castle Point in Essex where 32% of workers will benefit, the study by The Resolution Foundation think-tank found.

The top ten NLW hotspots also include Oadby and Wigston (Leicestershire), Forest Heath (Suffolk), Mansfield (Derbyshire), West Somerset, Breckland (Norfolk) and Rother in Kent.

However, the analysis found the NLW will have far less impact in London and parts of the South East.

Just 3% of employees in the City of London will see their wages increase this year, 6% in Camden and Tower Hamlets and 7% in Southwark and South Cambridgeshire.

The Foundation said the relative lack of employees affected by the new NLW in some areas reinforces the importance of the actual Living Wage campaign – a voluntary rate that is currently £9.40 an hour in London and £8.25 in the rest of the UK.

Torsten Bell, director of the Resolution Foundation, said: “The National Living Wage is a hugely ambitious policy with the potential to transform Britain’s low pay landscape.‎ Up to a third of workers will get a pay rise in National Living Wage hotspots, ranging from Canvey Island to Eastern Lancashire.

“Britain’s new legal wage floor will be felt throughout the country, but its impact will be bigger in some areas than others. Relatively few employees will benefit in high-paying parts of Britain such as the City of London and Camden, reminding us of the need to see more employers sign up to pay the higher voluntary Living Wage.

“Of course pay rises don’t come free so employers in some sectors and parts of the country will feel the pressure more than others. That’s why it’s vital that businesses and national, regional and local government make the successful implementation of the new legal minimum a priority.”

Of Britain’s big cities, Sheffield is set to be the biggest NLW winner, with 22% of workers set for a pay rise.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

  • RT @EdenTreeIM: Is the rise of automation an opportunity or a threat for society & investors? Neville White examines in @YourMoneyUK https:…
  • RT @EdenTreeIM: Is the rise of automation an opportunity or a threat for society & investors? Neville White examines in @YourMoneyUK https:…
  • Is the rise of automation an opportunity or a threat for society & investors? Neville White examines in… https://t.co/kfIpq3Mv4I
Read previous post:
2269454-money-and-locks
Higher earner? Act now before annual pension allowance cut

From 6 April 2016, the annual pension allowance limit will be gradually reduced for higher earners. Here's what you need...

Close