Living Wage update - Summer Budget 2015
Following our article in June, George Osborne has confirmed in his Summer Budget Announcement that the National Living Wage will be introduced from April 2016.
The Living Wage will apply to workers who are 25 or over and will be set at £7.20 per hour from 1 April next year. The intention is that this will rise to £9.00 per hour by 2020.
This change will hit retailers and businesses in the hospitality sectors particularly hard as two thirds of national minimum wage workers are engaged in these areas. There are hopes that increasing wage levels will result in increased productivity in the UK workforce but this additional cost is something that will need to be budgeted for by businesses in the coming years.