EN’s Response to the National Living Wage

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As the government launches plans today to tackle poverty and equality, there are a wide scope of benefits and disadvantages with their decision. At a glance, the now compulsory £7.20 an hour seems to be promising news, but many people have already claimed that this can become even more of a hindrance to the social mobility of the youth than an aid.

The Institute for Fiscal Studies has calculated that the National Living Wage will increase earnings for those at the bottom end of the pay scale by around 5%.  However, it is estimated that household incomes across the board will only increase by an average of 1% following the launch of the NLW[1].


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