Four ways to prepare for the new National Living Wage

By Emily Sutherland

- Last updated on GMT

The introduction of the new national living wage is now just a month away
The introduction of the new national living wage is now just a month away

Related tags National living wage Minimum wage

With the introduction of the new National Living Wage just a month away, the Government has issued four pieces of advice to help businesses manage the policy’s impact. 

Operators have been advised to:

  • Check you know who is eligible in your organisation;
  • Take the appropriate payroll action;
  • Let your staff know about their new pay rate, and
  • Check your staff under 25 are earning at least the right rate of the National Minimum wage 

The Department of Business, Innovation and Skills said over million workers will benefit from the increase, which raises the minimum wage by 50 pence to £7.20 for those aged 25 and over from 1 April.

The policy has divided the industry with some large pub chains, including JD Wetherspoons, warning that higher wages will place more pressure on already squeezed pubs. 

However John Basset, owner of five pubs throughout South Wales, said that he had already reaped the benefits after raising wages last October. 

“If staff are happier, our customers will benefit, he said.” And as my business grows, having motivated staff will mean they're more likely to want to step up and take more responsibility.”

Founder of CAMRA Champion Beer of Britain 2016 winners Tiny Rebel Brewery Bradley Cummings also said he had seen an improvement in staff morale since introducing the new living wage in January. 

“As a relatively young company, we take our responsibility to our staff very seriously. Making sure we were paying the National Living Wage to our staff was important to us, so we took the time to make sure we could afford it, and figure out how to make it work for us - and our staff"

HMRC has warned the policy will be ‘robustly’ enforced. Penalties include a fine of up to £20,000 per worker underpaid.

Related topics Legislation

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