From October 2016, the national minimum wage will rise by 3.7% to £6.95 for 21 to 24-year-olds, and by 4.7% to £5.55 an hour for those aged 18 to 20.
The minimum wage for 16 to 17-year-olds will rise to £4.00 and apprentices will see their wages go up to £3.40. Almost half a million young people will benefit from the increases according to the Prime Minister, who described the move as part of an 'all-out assault' on poverty.
Chancellor George Osborne said: "This Government is determined to improve the life chances of the poorest in our society. Alongside our new national living wage, we're also boosting pay for young workers with increases in the national minimum wage - the next step for the next generation as we move to a higher-wage society."
The trade is gearing up for the introduction of the new national living wage (NLW) of £7.20 an hour for workers aged 25 and over, due to take affect from April. With less than a month to go to until the policy is introduced, operators have been urged to check they know who is eligible for the higher rates within their businesses and take the appropriate payroll action.
'Jump in costs'
Licensees have been warned hefty penalties will be issued to those who fail to comply. However, some have argued the combined impact of higher wages and costly monthly business rate bills due to the Government's scrapping of retail relief has left many publicans on the edge of survival.
Gloucestershire host Karen James described the NLW as a "massive jump in costs".