Living wage spells end of free lunch for Nero staff

THOUSANDS of staff at Caffe Nero will lose their right to a free lunch as the coffee giant cuts costs to pay for the national Living Wage.

Experts said the move was a sign of bigger cuts to come and warned that companies across the country are likely to slash jobs and overtime, as well as perks.

Reforms introduced on April 1 have forced firms to give staff on the minimum wage a 50p-an-hour pay rise. The changes mean all workers aged 25 and over must be paid at least £7.20 an hour.

Caffe Nero will extend the pay increase to its younger workers from Monday, but said this will come at a cost.

In a letter to its 4,500 staff in Britain, Caffe Nero said the Living

‘Significant impact’

Wage had a ‘significant financial impact on the business’. Staff will lose the allowance which entitled them to a free lunch when they opted for certain food and drinks on the chain’s menu.

Under the changes, they will instead be entitled to a 65 per cent discount on food and a 75 per cent discount on drinks.

The Living Wage has been hailed as a victory for millions of low-paid workers. But business groups say it could lead to thousands of job losses and cutbacks on overtime.

The employers’ organisation the CBI has said that firms face a £9billion annual bill caused by the national Living Wage, the apprenticeship levy and the Government’s failure to ease business rates.