Effectiveness of measures taken to tackle inequalities, including government measures Flashcards
When was the National Minimum Wage (NMW) introduced?
1999
Which UK government introduced the NMW?
Labour government
What was the main aim of the NMW?
To end poverty pay and reduce reliance on benefits
Who pays the NMW/NLW?
Employers
What is the NMW?
Minimum hourly pay for workers under 21
What is the NLW?
Minimum hourly pay for workers aged 21 and over (as of 2024)
When was the National Living Wage (NLW) introduced?
2016
What did the NLW increase to in April 2024?
£11.44 per hour
Which age group became eligible for NLW in 2024?
Workers aged 21 and over
Who enforces the NMW and NLW?
HMRC (HM Revenue & Customs)
What happens if employers don’t pay the NMW/NLW?
HMRC can take them to court
How does the NLW reduce inequality?
Redistributes income to low-paid workers
How do higher wages help the economy?
Increases spending and boosts employment
How does higher pay affect workers’ productivity?
Makes them feel valued and work harder
How many workers benefited from the 2024 NLW rise?
Over 1.4 million
What is one risk for businesses from higher wages?
Increased staffing costs may reduce employment
What effect can the NLW have on other wage levels?
May lead to demands for pay rises across all levels
Who does the NLW not help?
The unemployed
Why is the NLW limited in tackling poverty?
It only helps those in work
What illegal practice might NLW encourage?
Paying workers cash-in-hand to avoid legal wages
What is the Real Living Wage (RLW)?
A voluntary, higher wage based on actual living costs
How much is the RLW in 2024 (outside London)?
£12.60 per hour
What is the London Living Wage in 2024?
£13.85 per hour
How is the NLW calculated?
Based on median earnings