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The following note contains a description and explanation of how the IFS has examined the impact on receipts of income tax and national insurance, and on spending on benefits and tax credits, if all private sector employers (and as a variant, all employers) increased wages to a "living wage" of £7.85 in London and £7.60 in the rest of the UK, and if there were no change in employment. Approximately 7.3 million people in the UK are paid less that these living wages, of which about 6 million are in the private sector and 1.3 million in the public sector.
Authors
Mike Brewer
Associate Director
David is Head of Devolved and Local Government Finance. He also works on tax in developing countries as part of our TaxDev centre.
Report details
- Publisher
- IFS
Suggested citation
Brewer, M and Phillips, D. (2010). IFS analysis on the "living wage". London: IFS. Available at: https://ifs.org.uk/publications/ifs-analysis-living-wage (accessed: 26 April 2024).
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