National Living Wage 'has not hit employment'

The Low Pay Commission said it had found "No clear evidence" of changes in employment or hours since the higher minimum wage was introduced in April. On Tuesday, the Organisation for Economic Co-operation and Development said the UK should be careful with plans to raise the National Living Wage, warning it could affect employment. The think tank's stance echoes the widespread claims of business organisations in the 1990s that the introduction of the UK's national minimum wage - which started in 1999 - would lead to widespread job losses. The Low Pay Commission warned that "In some cases" employers may have reduced other staff payments or perks to fund the higher basic wage, but said it had found "No significant change" in levels of overtime and the higher hourly rates paid for working on Sundays or bank holidays. The commission also said that the higher National Living Wage could "Present challenges" for the social care sector, with many providers facing losses.

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