NLW to increase to £8.72

By Nikkie Thatcher

- Last updated on GMT

Rising up: the increase in wages is part of the Government’s five-year plan
Rising up: the increase in wages is part of the Government’s five-year plan

Related tags: Pubs, Nlw

The national living wage (NLW) is set to rise this spring by 6.2% for those aged 25 and over from £8.21 to £8.72.

The new wages, which were recommended by the Low Pay Commission (LPC), are set to be introduced on 1 April 2020 and the 21 to 24-year-old rate will rise by a similar percentage of 6.5% from £7.70 to £8.20. the 18 to 20-year-old age bracket rate will go up from £6.15 to £6.45 (up 4.9%).

Teenagers aged 16 and 17 will see a rate increase from £4.35 to £4.55 (up 4.6%) and apprentices from £3.90 to £4.15 (a rise of 6.4%).

This followed Chancellor Sajid Javid announcing NLW will rise to £10.50 an hour within the next five years​ at the Conservative Party Conference in September last year.

Careful introduction

However, this was met with concerns about cost pressures from industry leaders who said while raising wages was necessary for pub staff recruitment and retention, the increase would need to be introduced carefully.

On the announcement of the most recent NLW rise, UKHospitality (UKH) chief executive Kate Nicholls said: “Hospitality operators absolutely want to reward the great work of their staff.

“In order to make that growth sustainable, other measures are needed to mitigate cost growth. UKH has long argued business rates place an unfair burden on hospitality.

“It is now critical that rates are cut for the sector in April, to provide relief while the Government’s commitment to a more fundamental review of business taxation is delivered.”

Shared ambitions

She added: “The new Government must also address employer national insurance contributions so businesses can pay higher wages while continuing to invest in their businesses and future jobs.

“We welcome the continued oversight of the LPC in ensuring future wages are set independently and safeguard the economy.

“This is particularly important outside of London where it is harder to mitigate wage increases with price increases. We look forward to working with the LPC to deliver on industry and Government’s shared ambitions for the workforce.”

Related topics: Legislation

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