Topic updates
Will the new National Living Wage cost jobs?
25th March 2016
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
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Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty 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 conferences in the UK and overseas.
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