Latest news with #NLW
Yahoo
01-04-2025
- Business
- Yahoo
National Living Wage lift is not without cost to some workers and economy
The first of April marks the turn of the financial year as well as Fool's Day, but the cost of living increases arriving this month are no joke. Combined water, energy, council tax and communications bills are rising almost £450 for average households, more of a gut punch than a punchline for already stretched households. The increase is largely driven by a long-delayed correction in water bills and energy price fluctuations, but there is some consolation on the other side of the ledger, with household incomes also rising across the board, a trend ministers are predictably seeking to highlight. Money latest: Most household bills rising today Pensioners have become used to the triple-lock delivering income growth and this year's 4.1% settlement amounts to an additional £471 a year for those on the new state pension. Wages more generally, meanwhile, have been rising faster than inflation for almost two years, and were running at 5.6% in January (though individual pay packets are determined by employers). The most impactful change however is to the National Living Wage (NLW), up 6.7% this month, worth £1,386 a year more to someone working a 40-hour week, who can now pull down an annual salary of more than £23,000. The NLW is one of the more strikingly effective public policy interventions of the last 30 years. Backed by governments of all stripes (as popular measures that cost the state nothing tend to be) it has delivered more money to young and lower-paid workers without causing the unemployment spike of which some warned when it was introduced in 1998. Guided by the Low Pay Commission, it last year achieved the goal for which it was established, to lift the minimum wage to two-thirds of the median salary. Cost of living calculator: That is not to say it is without cost. The increases are a burden to employers, one that is felt more keenly this year with the imminent halving of the employer national insurance threshold increasing annual costs by more than £700 per-NLW employee. There are also pressures further up the pay scale, with wage "compression" requiring employers to pay everyone more, as lower earners close the gap on their more senior peers. Economists warn there is also a danger that higher wages disincentivise companies from taking a risk on younger and traditionally cheaper workers, and instead target the experienced and already employed. There is also the question of what it means for graduates, who will emerge from higher education with improved long-term prospects, but laden with debt and looking at starting salaries not a lot higher than they may have earned in their part-time summer jobs.
Sky News
01-04-2025
- Business
- Sky News
National Living Wage lift is not without cost to some workers and economy
The first of April marks the turn of the financial year as well as Fool's Day, but the cost of living increases arriving this month are no joke. Combined water, energy, council tax and communications bills are rising almost £450 for average households, more of a gut punch than a punchline for already stretched households. The increase is largely driven by a long-delayed correction in water bills and energy price fluctuations, but there is some consolation on the other side of the ledger, with household incomes also rising across the board, a trend ministers are predictably seeking to highlight. Pensioners have become used to the triple-lock delivering income growth and this year's 4.1% settlement amounts to an additional £471 a year for those on the new state pension. Wages more generally, meanwhile, have been rising faster than inflation for almost two years, and were running at 5.6% in January (though individual pay packets are determined by employers). The most impactful change however is to the National Living Wage (NLW), up 6.7% this month, worth £1,386 a year more to someone working a 40-hour week, who can now pull down an annual salary of more than £23,000. 4:50 The NLW is one of the more strikingly effective public policy interventions of the last 30 years. Backed by governments of all stripes (as popular measures that cost the state nothing tend to be) it has delivered more money to young and lower paid workers without causing the unemployment spike of which some warned when it was introduced in 1998. Guided by the Low Pay Commission, it last year achieved the goal for which it was established, to lift the minimum wage to two-thirds of the median salary. Cost of living calculator: See how much your bills are going up That is not to say it is without cost. The increases are a burden to employers, one that is felt more keenly this year with the imminent halving of the employer National Insurance threshold increasing annual costs by more than £700 per-NLW employee. There are also pressures further up the pay scale, with wage "compression" requiring employers to pay everyone more, as lower earners close the gap on their more senior peers. Economists warn there is also a danger that higher wages disincentivise companies from taking a risk on younger and traditionally cheaper workers, and instead target the experienced and already employed. There is also the question of what it means for graduates, who will emerge from higher education with improved long-term prospects, but laden with debt and looking at starting salaries not a lot higher than they may have earned in their part-time summer jobs.
Yahoo
27-02-2025
- Business
- Yahoo
BRC warns of impact of Budget and regulations on retail part-time jobs
The British Retail Consortium (BRC) has issued a stark warning that the UK retail sector could see up to 160,000 part-time jobs disappear. The potential loss between 2025 and 2027, representing one in ten part-time retail roles, is attributed to the increasing costs of employment, which have been exacerbated by measures announced in the Autumn 2024 Budget. Retail is as the largest private sector employer in the UK, accounting for more than a third of jobs in 20% of parliamentary constituencies. The sector is particularly pivotal for part-time workers, who occupy more than half of the industry's positions. These roles are often filled by students, parents balancing work with childcare and seasonal employees who are crucial during peak trading times. According to BRC, Employer National Insurance Contributions (NICs) and the National Living Wage (NLW) are set to add an estimated £5bn ($6bn) to expenses by 2025. Consequently, retailers may be forced to reduce their workforce numbers. Part-time positions are especially vulnerable due to adjustments in employer NIC thresholds. Employers will soon be taxed for any employee earning above £5,000, a substantial decrease from the current £9,100 level. The change will make hiring part-time staff considerably more expensive. Proposed amendments under the Employment Rights Bill could compel businesses to cut back on local and flexible job offerings, disproportionately affecting part-time workers such as seasonal staff and students. The retail industry serves as a critical entry point for young individuals into the workforce; almost 20% of retail workers are under 25 years of age. The risk to one in ten part-time jobs, along with many entry-level positions, poses a threat to the career prospects of many young people. In response to these challenges, the BRC has unveiled its 2025 Manifesto for Retail. The manifesto outlines a strategy for stimulating investment and promoting growth, people and sustainability within the UK's retail sector. Through this initiative, the BRC aims to safeguard part-time jobs and ensure the continued vitality of the retail industry for future generations. British Retail Consortium chief executive Helen Dickinson stated: 'Retail is a key source of employment right across the economy. The industry and its supply chains account for a third of jobs in one-fifth of UK constituencies and retail plays a vital role in upskilling the workforce and boosting productivity growth, currently spending £4bn a year on training. 'Retail has long offered the first rung of the career ladder to hundreds of thousands of young people, playing a vital role in communities up and down the country. However, between rising employer National Insurance Contributions, higher NLW costs and incoming employment regulations, the government may be kicking away the ladder for the next generation. One in ten part-time retail roles are now at risk of being lost.' "BRC warns of impact of Budget and regulations on retail part-time jobs" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Independent
10-02-2025
- Business
- The Independent
Lidl increases pay in huge investment ahead of Government minimum wage increase
Lidl is set to boost the hourly pay of 28,000 employees next month, exceeding the government's upcoming minimum wage increase. The supermarket chain announced that its new pay rates, effective in March, will surpass the National Living Wage (NLW) by over 50p. Entry-level employees across the UK can expect an increase to £12.75 an hour, up from £12.40, with the potential to earn £13.65 with extended service. London employees will see a starting wage of £14 an hour, rising to £14.35 with length of service. This move precedes the government's scheduled NLW increase to £12.21 in April, up from the current £11.44 for those aged 21 and over. Lidl's pay rise represents a near-£15 million investment, encompassing increases for salaried workers as well. The company employs over 35,000 people across the UK. It comes as firms across the retail sector have warned over the cost pressures of soaring staff bills after Labour announced a increase in national insurance contributions (NICs) for employers and minimum wage rise, both from April 1, in its recent Budget. The NICs increase is designed to help pay for improvements to public services like the NHS, but retailers have criticised it for making it more expensive to hire people. A number of large firms, including Sainsbury's, axed jobs in the first weeks of 2025, with some of the cuts at the supermarket understood to be linked to the increase in NICs. Stephanie Rogers, chief people officer at Lidl, said: 'We're proud to offer leading pay rates in the sector, while fostering a culture of opportunity and inclusion that helps our teams thrive. 'As we continue to grow, investing in our people remains at the heart of what we do.' The move follows an announcement last month by fellow German discounter Aldi, which said it will raise its minimum hourly rate to £12.71, up from £12.40 an hour currently. Aldi's employees in and around London will see their hourly pay rise to at least £14, up from £13.65.
