The National Living Wage: Rising Costs Raising Concerns

Wednesday, 10th August 2016

For the past couple of months, many minimum-wage workers have enjoyed a little extra in their pay cheques. It was hoped that the government’s National Living Wage, introduced on 1 April 2016 at the rate of £7.20 an hour for workers 25 and older, would reduce the government’s £30 billion bill for working tax credits and end the subsidising of suppressed wages. It is too early to tell what the overall economic impact of the change will be, but evidence suggests that gloomy predictions about the negative effect on retail have some basis.

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