Adam Smith Institute

Calls For National Living Wage To Be Scrapped

Calls For National Living Wage To Be Scrapped

Calls have been made to scrap plans for the National Living Wage (NLW) as it’s suggested its implementation could lead to unemployment. A report from the Adam Smith Institute says that as businesses will need to fund the wage increases themselves, there’s a possibility they’ll hire fewer workers, automate certain processes, rise consumer prices or outsource their work abroad to make up the costs. If prices are increased, it’s argued that this will disproportionately affect the least well off in society as the cost of living will be increased. Around 5% of the UK workforce is currently paid the minimum wage, but this proportion is set to grow as the NLW rises from £7.50 in 2017 to £9.02 by 2020 Sam Bowman, executive director of the Adam Smith Institute and co-author of the paper, said: “We ... »