Is the National Living Wage discriminatory?

The Government introduces its National Living Wage today, but not everyone is positive about the change.

UK companies are bracing themselves to raise the salaries of their workers over 25 years of age by an average 2.3%. Yet, critics warn that the National Living Wage will affect women the most, is discriminatory towards younger workers and that it may not be enough to raise the living standards for UK staff.

Dr Angela Wright is a Senior Lecturer in Human Resources Management at Westminster Business School. She believes the new regulations will affect women the most. Wright explains: “The National Living Wage is not a ‘living wage’. It is set above the current National Minimum Wage but considerably below the ‘living wage’ paid voluntarily by several hundred employers. The current ‘living wage’ in London (worked out by the Major for London’s office) is £9.40 an hour, and the figure outside London is £8.25 (set by the Living Wage Foundation), also substantially higher than the National Living Wage of £7.20, which  is only payable to people over the age of 25.

“The low-paid sectors of retailing, hospitality, catering and caring, which employ large numbers of people, are the sectors which are most affected by the National Living Wage and women will be more affected by the rise in rates than men. Interestingly, the gender pay gap reduced after the National Minimum Wage was first introduced in 1997.