George Osborne: northerners and women to gain most from living wage

http://www.theguardian.com/society/2015/jul/13/george-osborne-women-northerners-win-most-living-wage

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The chancellor, George Osborne, will respond to claims his budget welfare reforms hit the poor hardest by saying women and those based outside London and the south-east will be the main beneficiaries of the government’s new national living wage.

He will publish a Treasury analysis of the impact of the central announcement of last week’s budget – a mandatory new living wage for all over-25s that is likely to top £9 an hour by 2020.

The analysis does not take into account the impact of the cuts on tax credits set out in the budget, but focuses purely on the boost to hourly earnings.

It reveals eight out of 10 people who gain from the national living wage are based outside London and the south-east, with the north-west expected to see the largest number of people getting a pay rise.

In the north-west, an estimated 350,000 people will receive a pay rise by 2020, while overall 750,000 in the north are set to benefit directly from the policy.

In the midlands, 550,000 low-paid workers will see their salary go up by 2020, compared with 500,000 workers in London and the south-east.

Related: I’m paying my staff a real living wage – not George Osborne’s version | Martin Whitlock

The Office for Budget Responsibility said 2.7m working people across the country could expect a boost to their wages by 2020.

The Treasury analysis shows that 65% of winners are expected to be women. This analysis contrasts with a wider one of the overall budget changes by the shadow home secretary, Yvette Cooper, showing women are hit hardest.

Osborneis expected to say on a visit to the north on Monday: ”It’s right that with more women in the workplace than ever, we do all we can to support them. Two thirds of those who will benefit from the new national living wage are women, which is something I hope everyone will celebrate.”