National living wage | Salary hike to put pressure on employers

The national living wage is set to increase by 6.2% this New Year in a move the government has branded as the ‘biggest cash increase ever’.

According to the BBC, the rise is more than four times the rate of inflation and will see hourly pay for people over 25 rise to £8.72 from April 2020.

Despite the increase, businesses warned that the sharp spike in wages could put increased pressure on companies and urged the government to reduce costs elsewhere for businesses.

This is supported by Hannah Essex, Co-Executive Director of the British Chambers of Commerce, who claimed that many companies ‘have struggled with increased costs in a time of great economic uncertainty’.