Latest Public Sector News


A fifth of public employers forecast Living Wage job cuts

More than a fifth of public sector employers say they plan to cut the size of their workforce as a result of the introduction of the National Living Wage (NLW), according to new research. 

The ‘Taking up the floor’ report, published by the Resolution Foundation and CIPD, revealed that despite making up 24% of all jobs, the public sector will make up only 11% of those affected by NLW in 2016 and 14% of those affected by 2020. This is because the private sector has a greater proportion of low-paid jobs than the public sector. 

Of the six million expected to benefit from the NLW, 4.7 million will be in the private sector. But 21% of public sector employers say they were more likely to cut jobs following NLW implementation, compared to only 13% of their private sector counterparts.

The survey of 1,037 employers stated that the consequences of the chancellor’s 1% pay cap for services and recruitment within the public sector were set to be a challenge in any case over this Parliament, but “the introduction of the NLW makes it all the more pressing”. 

Conor D’Arcy, policy analyst at the Resolution Foundation, said the new NLW will have a “huge impact” on the labour market when it comes into effect next April, with millions of workers set to get a pay rise and half of all employers saying they’ll be affected. 

Mark Beatson, chief economist at the CIPD, added: “The NLW was a bombshell for most employers when it was announced in July.  

“It comes into force next April, which does not give employers a lot of time to prepare.  Hence we found 26% of employers in September saying it was still too soon to say how they would manage the cost implications.”


There are no comments. Why not be the first?

Add your comment



public sector executive tv

more videos >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the open more > more last word articles >

public sector focus

View all News


Building a more diverse society

05/03/2018Building a more diverse society

Karl Wilding, policy director at the National Council for Voluntary Organis... more >
Developing our future leaders

05/03/2018Developing our future leaders

Kerry Bishop, apprenticeship and qualification development manager at the L... more >


Keeping London safe

05/03/2018Keeping London safe

Theo Blackwell, London’s first-ever chief digital officer (CDO), spea... more >

the raven's daily blog

Apprenticeship levy – five myths busted

05/03/2018Apprenticeship levy – five myths busted

On the first day of National Apprenticeship Week 2018 (NAW 2018), the director of the National Apprenticeship Service, Sue Husband, challenges some of the key myths around the... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >