Businesses who are most exposed to the National Living Wage (NLW) have largely absorbed the increase in costs for now, b
Q3 2016
National Living Wage growth must be based on evidence, not politics Businesses who are most exposed to the National Living Wage (NLW) have largely absorbed the increase in costs for now, but plan to pursue staff reduction measures if the NLW increases to £9 per hour by 2020. Caution is therefore needed with future NLW increases.
The British Chambers of Commerce (BCC), supported by Middlesex University, surveyed more than 1,600 UK businesses in August 2016 to understand their workforce planning priorities and issues
Many businesses haven't been impacted by the National Living Wage of £7.20 per hour. But over a third have increased their wage bills since it was introduced in April 2016.
9
25
significantly increased their wage bill
65
slightly increased their wage bill
have not changed their wage bill
Sectors most affected by the National Living Wage are:
Catering and accommodation
Arts, sports and recreation
57
Health and social care
Retail, hire and repair
of firms in these sectors have increased their wage bills since April 2016
Of the firms whose wage bill increased because of the NLW, many have not yet made major changes. But more of these firms expect to do so if the NLW rises to £9 by 2020.
100
0 Increase prices
34%
Reduce recruitment
Reduce staff hours No change
34%
25
The government needs to take an evidence-based approach to setting the NLW, reflecting business uncertainty, slowing growth and high input costs.
%
Reduce staff benefits Reduce pay growth
63%
24%
18%
18%
33%
29%
25%
13%
2016 (£7.20)
37%
2020 (£9)
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