How will the new National Living Wage affect you?

Christian Spence, Head of Research & Policy at Greater Manchester Chamber of Commerce

Last week the Chancellor of the Exchequer, George Osborne, announced a new compulsory National Living Wage for employees of 25 years and above.

This will be introduced in April 2016 at the rate of £7.20 per hour (the National Minimum Wage would be £6.70 per hour then), with an expectation that it will rise to above £9 per hour by April 2020.

The Chancellor also announced that Corporation Tax will fall from 20% now to 19% in April 2017 and 18% in April 2020 and that the Employer Allowance will rise from £2,000 to £3,000 per year (against employer’s national insurance contributions) to offset this increase.

Companies in many sectors will be affected by this, but particularly retail, hospitality, tourism, call centres, security and health and social care, and we are looking for businesses willing to be case studies in a report into the impact of this policy on employers and how the changes to Corporation Tax and Employer Allowance may or may not help businesses.

If you would like to participate, or if you have any questions on how this policy may affect you, please contact Christian Spence, Head of Research & Policy at Greater Manchester Chamber of Commerce, at christian.spence@gmchamber.co.uk