Impact of National Living Wage to vary across Scotland

Nearly one-third of employees in Clackmannanshire, Dumfries and Galloway and East Renfrewshire will benefit from the new National Living Wage (NLW) by 2020, according to analysis published by the Resolution Foundation.

On average around 22 per cent of employees across Scotland look set to be affected by the NLW.

However, the research shows that the impact of the increase will vary considerably across Scotland.

A third of employees working in Clackmannanshire will be affected by the increased minimum wage, while 32 per cent of employees in Dumfries and Galloway and 31 per cent in East Renfrewshire also look set to benefit.

In contrast, it will only affect 15 per cent of employees in the Western Isles, 16 per cent of employees in Aberdeen and 17 per cent of employees in Edinburgh and the Shetland Islands.

This could present a challenge in the lower-paying areas of Scotland such as Clackmannanshire, Dumfries and Galloway and East Renfrewshire, according to the think tank.

Conor D’Arcy, policy analyst at the Resolution Foundation, said: “The welcome new National Living Wage will have a huge impact on low pay, particularly towards 2020 as it approaches £9 an hour.

“While our analysis suggests the pay rise should be affordable for most firms, implementing the new wage floor will be challenging for some employers.

“That’s particularly true in areas where wages tend to be lower.

“Politicians must work closely with employers to ensure that the National Living Wage is a success, particularly in low-paying sectors.”