Some chamber member businesses across the country have reported that the recent increases in National Living Wage have had a significant impact on business costs and wage inflation.
The British Chambers of Commerce has been asked by the Low Pay Commission to provide evidence to help them understand the impacts of this recent rate increase and the proposed increases from 2025.
We’re asking businesses and organisations in our network to share their own experiences of the rate rise to help the formulation of this evidence base. Any insights can be shared with policy@liverpoolchamber.org.uk with confidentiality assured if required.
Impacts of Recent Rises
In April, the NLW increased by around 10% and the threshold was lowered from age 23 to 21. In addition, the Apprentice rate was raised by 20% to bring it in line with the 16-17 NMW rate.
- What impact have the increases had on businesses?
- What impact have they had on employment prospects for young people and apprentices?
Next Year’s Rate Increases
The Low Pay Commission will recommend an increase in the NLW from the current rate of £11.44 to a higher rate between the range of £11.61 and £12.18.
- What would the impact of this increase be on businesses in your region?
Future Rate Increases
The Labour Party has announced that it would lower the threshold of the NLW from age 21 to age 18.
The TUC is calling for the NMW to rise from two-thirds of median earnings to three-quarters, with a starting point of £15 per hour.
- What would be the impact of these increases on your members and local economy?
It is vital that the views of the network and members are heard in this consultation.
Evidence can be submitted to the Chamber by Friday 24th May.