Will the new ‘Living Wage’ need to be reviewed?
Over the past weeks we have seen household brands showing their support of the Government plans to introduce ‘National Living Wage’. It seems however not everyone is supportive of this, with questions being raise if the Government need to review their plans.
Chief executive of one of Britain’s largest DIY chains B&Q, last week called for a review of the proposed National Living Wage, to ensure that these increases are not exhausting on businesses. Though supporting the recent increase of National Minimum Wage earlier this month, B&Q’s Chief Executive Sir Ian Cheshire, has commented that wage bills for some sectors such as hotels, restaurants and care homes, could rise as much as 60%, if the Government move forward with plans to increase Minimum Wage to £9 by 2020.
Sir Ian Cheshire comments
“We actually have been calling for a real increase in the minimum wage anyway”
“I think the real challenge is in the outer years – when you start to get to £9 and that starts to be a very significant increase.”
“You’re talking, in some models I’ve seen inside businesses, of – if you go from here to 2020, wage bills going up maybe 50% or 60%.”
These concerns come after the recent increase in the minimum wage and the scheduled introduction of the ‘National Living Wage’ announced in the Summer Budget. From April 2016, workers over the age of 25 will see the minimum wage rise from £6.70 to £7.20, with a further increase to £9 by 2020.
The Summer Budget also saw an announcement about the reduction of benefits and Tax credits. CLICK HERE to read our recent blog covering the announcements of the Summer Budget.