The government has announced it has accepted the Low Pay Commission’s recommendation of a 6.6% increase in the UK’s National Living Wage.
From next April, millions of low-paid workers over the age of 23 can expect to earn no less than £9.50 per hour. Those aged 21 to 22 will see their hourly rate increase from £8.36 to £9.18.
While this is good news for low-income earners who have been hit by rises in inflation, universal credit cuts, and spiralling energy bills in recent times, the move will inevitably impact business budgets. Companies should start planning for these financial changes to ensure their cash flow is protected when the increase comes into effect.