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Living wage impact to vary considerably across Scotland Living wage impact to vary considerably across Scotland
(about 4 hours later)
About one-third of workers in Clackmannanshire and Dumfries and Galloway will benefit from the national living wage, according to research.About one-third of workers in Clackmannanshire and Dumfries and Galloway will benefit from the national living wage, according to research.
The Resolution Foundation analysis shows the impact of the national living wage will vary considerably across Scotland.The Resolution Foundation analysis shows the impact of the national living wage will vary considerably across Scotland.
A national living wage of £7.20 an hour for workers aged 25 and over will be introduced in April.A national living wage of £7.20 an hour for workers aged 25 and over will be introduced in April.
The UK government said millions of people will enjoy a pay rise.The UK government said millions of people will enjoy a pay rise.
The study said 500,000 employees in Scotland will be affected overall.The study said 500,000 employees in Scotland will be affected overall.
While one-third of employees in Clackmannanshire and Dumfries and Galloway will be affected, just 16% of employees working in Aberdeen are set to benefit.While one-third of employees in Clackmannanshire and Dumfries and Galloway will be affected, just 16% of employees working in Aberdeen are set to benefit.
Edinburgh (17%), Dundee (18%) and Glasgow (19%) are also significantly lower.Edinburgh (17%), Dundee (18%) and Glasgow (19%) are also significantly lower.
While strongly welcoming the new wage floor, the Foundation notes that implementing it will prove a greater challenge in lower-paying areas.While strongly welcoming the new wage floor, the Foundation notes that implementing it will prove a greater challenge in lower-paying areas.
It calls on the Scottish government, the Fair Work Convention, local leaders and businesses across the country to work together to minimise any job losses and ensure large groups of workers do not get stuck earning only the legal minimum.It calls on the Scottish government, the Fair Work Convention, local leaders and businesses across the country to work together to minimise any job losses and ensure large groups of workers do not get stuck earning only the legal minimum.
'Challenge for some employers''Challenge for some employers'
The Foundation also calls on employers to focus on boosting productivity in retail, hospitality, cleaning and care to ensure the national living wage is affordable for them.The Foundation also calls on employers to focus on boosting productivity in retail, hospitality, cleaning and care to ensure the national living wage is affordable for them.
The group states the UK government's new pay structure is not actually a "living wage", and calls for an expansion to the voluntary living wage of £8.25 across the country.The group states the UK government's new pay structure is not actually a "living wage", and calls for an expansion to the voluntary living wage of £8.25 across the country.
Conor D'Arcy, policy analyst at the Resolution Foundation, said: "The welcome new national living wage will have a huge impact on low pay, particularly towards 2020 as it approaches £9 an hour.Conor D'Arcy, policy analyst at the Resolution Foundation, said: "The welcome new national living wage will have a huge impact on low pay, particularly towards 2020 as it approaches £9 an hour.
"While our analysis suggests the pay rise should be affordable for most firms, implementing the new wage floor will be challenging for some employers. That's particularly true in areas where wages tend to be lower."While our analysis suggests the pay rise should be affordable for most firms, implementing the new wage floor will be challenging for some employers. That's particularly true in areas where wages tend to be lower.
"Politicians must work closely with employers to ensure that the national living wage is a success, particularly in low-paying sectors.""Politicians must work closely with employers to ensure that the national living wage is a success, particularly in low-paying sectors."
'Recognise its benefits'
A UK government spokesperson said: "The government is making sure Britain gets a pay rise and that businesses have the skills they need to succeed. We are already seeing record employment rates and real wages growing to levels not seen since the recession.A UK government spokesperson said: "The government is making sure Britain gets a pay rise and that businesses have the skills they need to succeed. We are already seeing record employment rates and real wages growing to levels not seen since the recession.
"As the report itself highlights, workers in some cities will see even bigger benefits, reinforcing our drive to rebalance the economy through the northern powerhouse and the devolution of powers to local government and cities.""As the report itself highlights, workers in some cities will see even bigger benefits, reinforcing our drive to rebalance the economy through the northern powerhouse and the devolution of powers to local government and cities."
A Scottish government spokesman added: "The Scottish government agrees with the Resolution Foundation's assessment of the national minimum wage - while any increase is welcome, it falls well short of the living wage of £8.25.
"There are now well over 400 organisations paying the living wage in Scotland, compared to just a handful a year ago and more than 80% of Scots receive £8.25 or higher.
"However, we would call upon more firms to recognise its benefits including including improved morale, higher productivity and lower absence rates."