National living wage will make 70% of employees 'more positive'

Workers aged 25 and older will have their minimum wage of £6.70 hiked up to £7.20 in April, as announced by the Chancellor at the Summer Budget.

While the Government survey​ found 70% said they would feel more positive, it also found 59% of respondents would feel more motivated at work as a result of the increase in their pay packets.

Some licensees and pubcos already pay employees at or above the impending NLW​, but for others it may be an added financial burden, added to a £1,500 tax hike​.

'Essential'​

Chancellor George Osborne said: "The new NLW is an essential part of building the higher wage, lower welfare, lower tax society that Britain needs and it's great to see that more than a million people will see their living standards boosted when this comes into force on 1 April.

"Britain deserves a pay rise and this one-nation Government is making sure it gets one, helping more people have the security of a higher wage to provide for themselves and their families."

Guide for employers

The Government has published a four-step guide for businesses on the living wage website, asking firms to:

1. Check you know who is eligible in your organisation.
2. Take the appropriate payroll action.
3. Let your staff know about their new pay rate.
4. Check your staff, aged under 25, are earning at least the right rate of NLW​.

HMRC will have responsibility for enforcing the new NLW in addition to the national minimum wage from April 2016 and will take firm action where an employer fails to pay the correct wage. 

Pay packets

Many workers will see their pay packets rise by up to £900 a year, which could increase the wage bill for many publicans.

Business secretary Sajid Javid said: "The Government believes that Britain deserves a pay rise and our new NLW will give a direct boost to over a million people. We are building a more productive Britain and giving families the security of well-paid work.

"This is a step up for working people, so it is important workers know their rights and that employers pay the new £7.20 from 1 April this year."

Advertising campaign

The survey results coincide with the launch of a new advertising campaign based around people talking about the positive effect the new NLW will have on their lives.

The advert, due to launch today (18 January 2016), will feature UK workers set to benefit from the NLW as it increases during the next four years.

School cleaner Michelle Curley, of Erdington, in Birmingham, earns £6.70 per hour. The 37-year-old, who also appeared in the TV advert, said: "It will really help me a lot, especially with the shopping bill. Fifty pence may not seem a lot, but it will make a difference."

Rena Matthew, who also appeared in the TV advert, earns £7 per hour as a social services family contact officer in west London.

The mother of two said: "I think it's a great idea. There are a lot of people who are struggling to meet financial needs. To have this extra support and get a good wage is really important to them.

"The NLW will give people a little more confidence and motivation to work."