Agnes Norris Keiller from the Institute for Fiscal Studies examines how the pay and living standards of low-wage employees have changed since the National Living Wage was introduced. She finds that while low-paid employees have seen strong growth in their earnings from employment, improvements in their average living standards netherlands rcs data have been much more modest. She also highlights that poverty among low-paid employees has fallen because of stronger income growth for those who live in lower-income households.
The introduction of the National Living Wage in April 2016 meant a sharp increase in the minimum wage for employees aged 25+ from £6.70 to £7.20.
This increase has boosted the hourly wages of employees previously paid below £7.20, provided they remain in employment. It may also have benefited some on higher wages too as employers increases their wages to maintain a differential between those on the lowest wages and those earning slightly more.