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How Will HR Resolve the ‘Problem’ of the National Living Wage


The National Living Wage (NLW) comes into force across the UK on 1st April 2016 on what appears to be a wave of negative publicity.

A report released by the British Retail Consortium (BRC) claims that the combination of the NLW and the apprenticeship levy may result in 900,000 lost jobs in the sector by 2025. The increase means that the minimum hourly pay for people over the age of 25 will rise from £6.70 to £7.20 per hour. The predicted additional cost to wage bills according to the BRC is predicted to reach £300 billion annually.

The solution put forward by employers is to boost productivity in the workforce but as levels remain stubbornly low, is HR fooling itself?