Theresa May has pledged to increase the rate to around £8.75 per hour by 2020, and Jeremy Corbin went a step further by saying that all workers should be paid at least £10 an hour.
But what would this do for your business?
The prospect of an increased salary bill is a daunting one. Most employers want to reward their staff fairly, however, there are limits to what small businesses can afford and you are likely to be concerned about how mandatary wage increases will impact your business over the coming years.
You’re not alone. The Institute for Fiscal Studies has commented that accelerating the pace of increases to the national living wage could price workers out of a job, and that young people are likely to be the worst affected.
We will have to wait and see how it pans out, but it’s fair to assume that the National Living Wage will increase. For the moment, it would be sensible to give some thought to how your business would cope with increases. It’s not just the impact of an hourly rate increase to consider, it’s also the knock-on effect of how it would affect parity with the rest of your workforce.
Changes like this can be daunting, but they’re all part of running a business.
If you would like to chat about how you can get the most out of your budget and your people, please get in touch by completing the Contact Form or calling us on 01604 763494 to arrange your no-obligation discussion.