What are the issues with making the living wage a reality?

The Autumn Statement announced last week by Chancellor Phillip Hammond has seen an increase in the National Living Wage from £7.20 to £7.50 from April 2017 - with the aim of increasing it to £9 an hour by 2020.

Although good for employees, the Organisation for Economic Co-operation and Development warns that the UK should be cautious of the policy, given its possible impact on employment, combined with slow growth forecasts and a weakening economy – the BBC reports.

Peter Smith, Senior Client Partner at Korn Ferry Hay Group, spoke to us about the new measure. He says that implementing the minimum wage needs a thorough long term plan which takes account of all the consequences and the risks.

“This year, employers have absorbed the increase in a number of ways: squeezed profits; increased prices; cuts in other parts of the pay and benefits package to allow for a higher basic wage,” he explains.