Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

National living wageDepartment for Business and Trade (DBT)

Government must press ahead with national living wage rises

by Jo Faragher 7 Sep 2016
by Jo Faragher 7 Sep 2016 Business secretary Greg Clark has been lobbied by trade associations to be cautious over rises. Photo: Tolga Akmen/LNP/REX/Shutterstock
Business secretary Greg Clark has been lobbied by trade associations to be cautious over rises. Photo: Tolga Akmen/LNP/REX/Shutterstock

The Government should continue to increase the national living wage at the rate it planned when it was announced, according to the Resolution Foundation.

Since the Brexit vote in June, there have been calls from business lobbyists to restrain future increases above the current rate of £7.20 per hour for those aged 25 and over.

National living wage resources

National living wage survey 2016

How to tighten payroll and enhance productivity

What elements of pay count towards the national living wage?

Last month, 21 trade associations sent a letter to the Government claiming the planned rises would hurt business and that the new business secretary Greg Clark should “exercise caution” when agreeing to future increases.

But the Resolution Foundation said that “backsliding” on the wage increases could leave some workers up to £1,000 a year worse off.

The thinktank added that women, the young and older workers were most likely to lose out if future rises are limited.

When the national living wage was announced in last year’s budget, the then Chancellor George Osborne said it would rise to become 60% of the UK median salary, which was estimated at the time to be around £9.

Based on independent economic forecasts published by the Treasury, the Resolution Foundation estimates that the national living wage will rise to about £8.70 in 2020 – slightly lower than originally forecast, as overall wage growth is likely to weaken.

Conor D’Arcy, policy analyst at the Foundation, said that abandoning increases “would also be costly for millions of low-paid workers, so the Prime Minister should stick to her guns”.

The thinktank said that the 2020 “target” could also fluctuate further in the coming years as wage forecasts are updated and the impact of the UK’s exit from the EU becomes clear.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The Low Pay Commission will meet in October to decide its recommendation for next year’s increase.

D’Arcy added: “The task of tackling Britain’s huge low pay challenge isn’t any less pressing as a result of the referendum. The announcement of the national living wage will always be associated with George Osborne. But if its implementation is managed skilfully, it could rank high among Theresa May’s lasting achievements.”

Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

previous post
Balancing CEO pay: can publishing pay ratios really help?
next post
“HR professionals are still the people who tell you that you can’t do something”

You may also like

Next to improve wage-setting transparency after shareholder pressure

16 May 2025

UK-US deal saves ‘thousands’ of jobs in car...

9 May 2025

Government defends NIC relief in UK-India trade deal

7 May 2025

Top 10 HR questions April 2025: increases to...

2 May 2025

British Steel puts brakes on redundancy process

23 Apr 2025

British Steel jobs look more secure after emergency...

14 Apr 2025

Most businesses will need to adjust wages in...

28 Mar 2025

HR and businesses respond to Spring Statement

26 Mar 2025

April 2025: What’s coming up for HR?

21 Mar 2025

Pharmacies to work to rule over higher employment...

18 Mar 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+