UK set for “ambitious” National Living Wage policy

The Government will do more to combat low pay by launching a “more ambitious” National Living Wage (NLW) scheme, it has been revealed.

The announcement comes in response to an independent review into the evidence on minimum wage, a major report published by leading low pay expert Arindrajit Dube.

The report, published here, found that higher minimum wages have little impact on the economy and employment, but do “significantly” increase the earnings and wellbeing of the lowest paid workers.

With room for more “ambitious policies”, the review recommends that the NLW could be increased to as high as 60 per cent to two-thirds of median hourly earnings.

Commenting on the report, Professor Dube said: “Based on the overall evidence—with a special emphasis on the recent, high quality, evaluations of the National Living Wage and other more ambitious policies internationally — my report concludes that that there is room for exploring a higher NLW in the UK up to two-thirds of the median wage.

“It will also be important to empirically evaluate and recalibrate any such ambitious policy based on new evidence down the road.”

Reflecting on the findings, the Chancellor of the Exchequer, Sajid Javid, announced today that the NLW would increase to at least £10.50 by 2024.

“The evidence is clear that our approach is the right one,” he said. “We will end low pay by putting the National Living Wage on a path to increase to £10.50 over the next five years.”

According to the latest statistics, a full-time minimum wage worker’s annual pay has risen by over £2,750 since the introduction of the NLW.

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