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National Living Wage

National Living Wage

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19 November 2015 Latest

From next April 2016, the National living wage will rise to £7.20 and then to £9.00 an hour by 2020.

Whilst reportedly this will result in a happy  boost to the earnings of  over  6 million workers,  costs will increase notably for some businesses.  Weatherspoon’s have recently commented and suggested that this will lead to pub closures.

The NLW only applies to workers over 25, it will therefore be interesting to see if it results in Employers deliberately avoiding employing the over 25’s.

To try to offset this, the government has advised there will be reductions to Corporation Tax and an increase in the Employment Allowance. The over 25’s who are currently receiving  the minimum wage will welcome this increase, however, businesses, particularly small businesses, are advised to watch this space closely – the big question lies with whether they can truly afford this increase.


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