Around 3.7 million women in Britain are going to find more cash in their pockets from next year, says independent think tank Resolution Foundation.
This is because nearly three in 10 employees told them that they will receive a pay rise by 2020, owing to the rise in the National Living Wage, which comes into force in April 2016. Around 2.3 million male workers will also benefit from the change.
The wage rise will be worth an average of £1,210 ($US1,850).
“Despite provoking significant controversy and opposition prior to its introduction, the National Minimum Wage (NMW) has since proven to be one of the most successful and broadly-supported policies in recent UK history,” said the Resolution Foundation in its report, entitled “Higher ground Who gains from the National Living Wage?”.
“The approach of cautious introduction and subsequent evidence based development helped to all but eliminate the worst extremes of low pay. And, as an extensive body of research has illustrated, it did all this without damaging employment.”
In July, UK Chancellor George Osborne revealed that the government would scrap the minimum wage of £6.50 an hour for workers over 25 years’ old, for the new National Living Wage of £7.20 in April next year.
The National Living Wage is intended to pay employees the minimum amount to live a “normal” standard of living. For example, a full-time waitress should be able to live off her low wages and afford rent, food, transport, and bills without having to take a second job or an exceptional amount of extra hours.
“Because of their concentration among the low paid, women will account for the majority of the winners,” said one of the report’s authors Conor D’Arcy. “This will have a positive – though modest – effect on the gender pay gap, and will particularly help those working part-time.”
By 2020, the National Living Wage should rise to £9.
However, the under-25s will still have to be stuck with the minimum wage, which does rise to £6.70 next month.
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