Mary Walker comments in the Daily Express responding to the rise in National Living Wage for workers aged 25 and over
Wednesday 1st April 2020
Mary Walker, partner at Gordons and an employment law specialist, has been quoted in the Daily Express responding to the increase in National Living Wage, which is set to come into force this week.
Despite many businesses facing additional pressures due to the coronavirus, workers aged 25 and over will see their hourly rate increase to £8.72. The National Minimum Wage will also increase for all age groups, applicable from apprenticeships up to 24 year olds.
The increase is going ahead in spite of recent criticism from the Institute for Fiscal Studies (IFS).
Commenting on the changes, Mary said: “This is a significant increase – more than four times the rate of inflation for those aged 25 and over – and further increases are due to follow, as set out in the Chancellor’s Budget in March. In fact, it’s the biggest percentage since the National Living Wage was first introduced in 2016.
“As the IFS has already pointed out, this is another squeeze on businesses already facing pressure from external factors, including coronavirus and the subsequent restrictions to working practices.
“Whilst it would be welcomed by workers, including those who have been furloughed, organisations will have to bear the brunt of additional costs, particularly in the short-term at a time when many are struggling with cashflow challenges.”
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