Main menu For students For teachers Explore our subjects Student events & courses

Explore

More for students
Sign in

Teaching Economics

Topic updates

Will the new National Living Wage cost jobs?

Geoff Riley

25th March 2016

Share this content:

In July 2015, the Chancellor George Osborne announced that a new National Living Wage (NLW) would replace the National Minimum Wage (NMW) for those aged 25 and over starting from 1 April 2016. The NLW will initially be set at a level of £7.20 per hour – 50 pence higher than the prevailing NMW.

By 2020, the Chancellor expects the NLW to reach £9 per hour, which is 13% higher than the £8 previously planned. Will the new national living wage lead to significant reductions in employment and higher inflation?

For background statistical information, this data set from the ONS comes highly recommended

Share this content:

Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

You might also like

In the News Teaching Activity – What key economic challenges will a new PM face? (June 2026)

29th June 2026

In the News Teaching Activity – How has the vote to Brexit 10 years ago affected the economy? (June 2026)

15th June 2026

In the News Teaching Activity – Does the childcare industry need regulating to reduce hidden costs to parents? (June 2026)

4th June 2026

In the News Teaching Activity – Can creativity turn everyday skills into valuable economic assets? (June 2026)

1st June 2026

Macro Effects of a Higher UK Minimum Wage

15th May 2026

Micro and Macro Case Study: Norway and Climate Change

Topical case studies

Why are resident doctors striking again? (Apr 2026)

16th April 2026

Macro Case Study: Germany and Energy

Topical case studies