Workers to benefit from new wage rise
ALMOST three million workers are set to benefit from what Boris Johnson has hailed as the “biggest ever” increase in the national living wage but business leaders have warned the above-inflation rise will “pile further pressure” on businesses’ cash flows.
According to data from the independent Low Pay Commission, the 51p increase in the NLW to £8.72 from £8.21 is the largest since the rate was first introduced in April 2016.
The previous biggest increase was in April 2016, when the rate rose by 50p from £6.70 to £7.20 per hour.
From this April younger workers who receive the minimum wage will see their pay boosted by between 4.6 and 6.5 per cent depending on their age with 21 to 24-year-olds seeing a 50p increase from £7.70 to £8.20 an hour.
Hannah Essex, co-executive director at the British Chambers of Commerce, said an aboveinflation pay increase came at a difficult time for businesses.
“Businesses want to pay their staff a good wage but many have struggled with increased costs in a time of great economic uncertainty.
“Raising wage floors by more than double the rate of inflation will pile further pressure on cashflow .”
Craig Beaumont, director of external affairs at the Federation of Small Businesses, urged ministers to implement promised pro-business measures before the increase takes effect.