Low-paid workers' wages to rise four times faster than average earnings - study


The wages of low-paid workers will increase four times faster than average earnings this year, according to a new study.

Staff on the minimum wage will receive a 50p-an-hour increase on April 1 when the new national living wage of £7.20 for adults comes into force.

A study by the Resolution Foundation found that the new rate, on top of a 20p-an-hour rise in the national minimum wage last October, has led to a 10.8% increase for low-paid workers in the past year, compared with the average of 2.7%.

The trend will continue, with the living wage set to reach £9 an hour by 2020, it was predicted.

Torsten Bell, director of the Resolution Foundation, said: "The national living wage is a bold policy.

"It is the right thing to do given the scale of low pay in UK, which is one of the great challenges of our time."