National Minimum Wage
National Minimum Wage
National Minimum Wage
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<strong>National</strong> <strong>Minimum</strong> <strong>Wage</strong><br />
30<br />
Figure 2.7: Bite of the Adult <strong>National</strong> <strong>Minimum</strong> <strong>Wage</strong> Using Different Earnings<br />
Measures, GB and UK, 2000-2011<br />
Bite (per cent)<br />
55<br />
50<br />
45<br />
40<br />
35<br />
30<br />
2000<br />
2001<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
April of each year<br />
2007<br />
2008<br />
2009<br />
AWE total pay ASHE median ASHE mean<br />
Source: LPC estimates based on ONS data, AWE total pay (KAB9), GB, average actual weekly hours of work (YBUV), UK, monthly,<br />
seasonally adjusted, 2000-2011, and ASHE: without supplementary information, April 2000-2004; with supplementary information,<br />
April 2004-2006; and 2007 methodology, April 2006-2011, standard weights, including those not on adult rates of pay, UK.<br />
2.25 Table 2.1 shows a similar picture with regards to the bite of the minimum wage across the<br />
whole of the ASHE hourly earnings distribution, such as the lowest decile, the lowest<br />
quartile, the median or the mean. Between the introduction of the minimum wage in 1999<br />
and 2007, the bite at the median increased from about 46 per cent to 51 per cent. From 2007<br />
to 2010, the bite remained just under 51 per cent, before increasing to 51.7 per cent in 2011.<br />
2.26 The bite compared with other points on the distribution follow a similar pattern, increasing<br />
markedly between 1999 and 2007, then remaining stable between 2007 and 2010. According<br />
to ASHE, average hourly earnings in the UK increased by just 0.9 per cent between 2010<br />
and 2011. This was much lower than the increase in the minimum wage (2.2 per cent). Thus,<br />
the bite at the mean has increased in 2011. The increases in the bite in 2011 have occurred<br />
across the whole of the earnings distribution but they have been greater at the bottom end<br />
of the distribution.<br />
2010<br />
2011<br />
55<br />
50<br />
45<br />
40<br />
35<br />
30