An independent report into the impact of the National Living Wage (“NLW”) has found that the government plans to lift the NLW to £10.50 per hour by 2024 will have only a minimal effect on employment rates while significantly improving the financial position of the lowest paid.
The study, conducted by a Professor of Economics at the University of Massachusetts, assessed the impact of minimum wage policies in the UK, the US and Europe and found that the effects of higher minimum wage levels on employment was “mooted” whilst it significantly increased the earnings of low paid workers and found there was good evidence that a higher minimum wage could reduce vacancies and turnover.
If you do require any further advice on this issue or any other employment law concern, please contact our Rebecca Ellerbeck at Rowberrys on 01344 466353.