14 April 2016

  |  CBI Updates Team

Update

National Living Wage launched

With the National Living Wage coming into force on 1 April, the CBI has said these wage increases risk being unaffordable for many firms.

The CBI has stressed that business is concerned about the speed and scale that increases in the NLW will have on their ability to afford these rises, without taking mitigating action that could damage prosperity.

Click here for the CBI’s reaction to the launch of the NLW

CBI deputy director-general, policy and campaigns, Josh Hardie said the government should “listen to and act on” the advice of the independent Low Pay Commission, which is well-placed to monitor and recommend the best way to make this policy contribute to prosperity over the long term.

Since the policy was announced in the 2015 summer budget, companies have been looking at their business models to manage the extra costs, including by reorganising the workforce, raising skills, improving leadership and management capacity and investing in new technologies. However, the increase may force some to reduce hours and benefits for their employees.

In order to help members prepare for this significant policy change, the CBI has produced guidance to steer you through what we know about the policy, what you need to consider and what action the CBI is taking on your behalf.

Click here for more information on our NLW ‘Intelligence First’ activity

You can also find coverage of the CBI’s comments on the launch of the NLW in the Evening Standard, Manchester Evening News and Sky News.

For more information please contact rachel.smith@cbi.org.uk