Money (8)

The benefits of the National Living Wage will vary across the UK, according to a think tank.

The Resolution Foundation claims that in some areas of the UK up to a third of workers could receive a pay rise, while other areas will see barely any benefit.

The National Living Wage (NLW), which comes into effect on 1 April, will see all workers over the age of 25 paid at least £7.20 per hour, 50p more than the current National Minimum Wage (NMW), rising to £9 by 2020.

London and the South East will see as little as 3% of workers earn more. But those in Torridge in Devon are set to be the biggest winners, with 35% of the workforce expected to receive a higher wage.

"Britain's new legal wage floor will be felt throughout the country, but its impact will be bigger in some areas than others," said Torsten Bell, director of the Resolution Foundation.

In total, the Foundation estimates 4.5 million workers in the UK will benefit from the introduction of the National Living Wage. The Office for Budget Responsibility (OBR)'s official estimate says that 1.3 million workers will benefit immediately, with a further 2.9 million by 2020. But including the "spill-over" effect - other roles seeing pay rises to maintain salary levels - the OBR estimates 6 million people could benefit by 2020. However, the OBR also said that tens of thousands could have their hours reduced or lose their jobs altogether, with smaller businesses unable to cope with the higher wage bill.