Tory welfare cuts will destroy benefit of new living wage, research shows

Rise of 50p an hour will not cover loss of benefits for 6.5 million people, says Resolution Foundation thinktank

A record 6.5 million people - almost a quarter of UK workers - will remain trapped on poverty pay next year, despite George Osborne's 50p-an-hour increase in the national minimum wage, according to research by the Resolution Foundation thinktank.

Adam Corlett, Resolution's economic analyst, said: "While the chancellor's new wage floor will give a welcome boost to millions of Britain's lowest-paid staff, it cannot guarantee a basic standard of living or compensate for the 12bn of welfare cuts that were announced alongside it."