How the UK living wage is calculated and how it relates to other wage floors

What is it about?

The growing popularity of "living wages" raises the issue of the respective roles of different kind of wage minimum. The compulsory minimum wage in the UK has been guided by a calculation of what level will not be damaging for jobs. The voluntary living wage is based on a living standards calculation, explained in this article. The National Minimum Wage is compulsory and combines aspects of the two. The article considers how these interact, and what can make a living wage sustainable.

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Why is it important?

The announcement of the National Living Wage has changed the basis of government policy on the minimum wage, and it is important to tease out its implications