The National Living Wage – A Step Up For Britain?

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With the new National Living Wage now in place, businesses must make sure they are taking the appropriate steps to ensure staff that meet the criteria, are paid the correct rate.

It was recently announced that more than 90 employers have failed to pay their workers the National Minimum wage in recent years, covering sectors including social care, hospitality and security services. With the ‘naming and shaming’ being announced, one business in particular reportedly had to pay their affected employees £1,742,655.56*. It is important, more so than ever, that your business is compliant.

In April, the Government’s new National Living Wage became law. All employees aged 25 or over, and not in their first year of apprenticeship, are now legally entitled to at least £7.20 per hour.

Over a million workers in the UK aged 25 and over are set to directly benefit from the increase, which sees the current minimum rate of £6.70 increase by 50p. Many will see their pay packets rise by up to £900 a year. This will be the largest annual increase in a minimum wage rate, in cash and real terms, since 2009.

‘Businesses are advised to take simple steps now as polls reveal 93% of bosses support initiative, with the majority believing it will boost productivity and retain staff’.

Follow these steps to ensure your business has made the appropriate changes:

  • Check that you know who is eligible within your business. Find out on GOV. UK’s employment status
  • Take the appropriate payroll action. Find useful guidance in HMRC’s tutorials 
  • Let your staff know about their new pay rate.
  • Check that your staff under 25 are earning at least the right rate of National Minimum Wage.


Check out a video on the new national living wage below
youtube screen shot


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