What price a living wage? Understanding the impact of a living wage on firm-level wage bills
Article
Co-published by IPPR and the Resolution Foundation, this short report analyses the likely impact of introducing the living wage as a new wage floor for a range of FTSE-listed businesses across a range of industry sectors.
The report concludes that for many, especially in banking, IT and construction, the average upfront wage costs are affordable, representing less than a 1 per cent increase. In other industries, such as retail and hospitality, where the proportion of lower-paid jobs is higher, the upfront costs would be higher, at between 4.7 and 6.2 per cent. So for these firms the report recommends a phased introduction, starting with a move to pay 90 per cent of the living wage.
The living wage is a voluntary measure designed to pay the lowest-paid workers enough to enable a decent standard of living, hand-in-hand with full take-up of available benefits and allowances. There are separate rates for London (£8.30 per hour) and elsewhere (£7.20).
Related items
Supporting the status quo: How the taxation of wealth in the UK grows regional divides
The new government’s primary mission is to deliver economic growth, rooted in an ambition for prosperity and opportunity to be accessible across the UK.Driving 'natural' renewal: The progressive case for restoring the natural environment
Our natural environment is in crisis, and nature in this country is currently in a state of managed decline.Plugged in: Accelerating the electrification of road transport
The new government has been elected with a mandate to deliver ambitious climate action.