National Minimum Wage Increase

[good96]

With the NMW increase from April 2025 rising to £12.21 - for someone who works 40 hours a week - that is £25,400!

Can see so many businesses struggling/restructuring/redundancies after this!

“They already are being paid the right amount for their role” shocking statement! NMW cannot stay as it is in a CoL crisis. Wages in the U.K. are generally low wage - why is it a race to the bottom constantly.

People always trot out the same arguments about unemployment whenever this topic comes up and it simply isn't true.

Unemployment rates crept gradually downwards in the years following the introduction of minimum wage in 1999. They surged following the financial crash in 2008, fell dramatically to some of the lowest levels we have ever experienced and increased again following COVID / Ukraine. Even with those recent increases they still remain historically low.

So if anything, ignoring the two global disasters, you could potentially draw a correlation that demonstrates that higher minimum wages leads to lower unemployment. And yes, I know there will be a small business owner along in a minute to tell me why their particular anecdote means I'm wrong, but statistics don't lie!

Clearly no business experience then?

Any decent business leader would have factored in that the NMW always goes up at this time. The rates always change on the 1st April every year.

If a business owner can't afford to pay the minimum wage then they don't have a viable business.

The government currently prop up a lot of people on NMW with universal credit because NMW isn’t enough to live on. I can see why this increase needs to happen.

I am however very concerned about what this means for nurseries! I really hope the rate they receive from the government increases too.

Well, you are partly right. Of course if a company can't pay their wages they are not viable. However, this increase is far more than was expected and it is combined with an increase in NI. It will hurt a lot of good, sensible businesses.

So the business that helps you is worth worrying about?

How? It’s less than the last yearly increase under a Tory government .

But how would that work? A single parent in a high cost area would need to be paid 2 or 3 times the current NMW just to afford their rent and childcare costs. A wage higher than many jobs that require qualifications and years of experience and training.

The increase in NMW isn't just relevant to businesses. Most public sector administration staff, HCA and even lab staff are already on a few pence an hour over NMW, several of the lower grades have been overtaken by the NMW and increases in their salaries to maintain the gap over NMW just won't happen, making existing recruitment and retention issues even worse because people with the skills and experience needed just won't apply for a job that pays NMW they'll either go somewhere else that pays more or they'll get a true NMW job that doesn't require experience or CPD and they can leave behind when they finish their shift.

"Combined with the increase in NI"

Bit ridiculous to expect national minimum wage not to go up on 1st April because of other policies.Have your beef with increase in NI( which clearly needs to happen).

This is absolutely the correct move. MW workers need this to combat the cost of living prices. I think it's still too low. 13 quid would be better. It's not life changing for MW workers but it's a start.

I know you are doing your best here @Bump3tyBump

I feel sorry for people who have trained for years with qualifications who will be on NMW.

Typical Labour! Why bother trying to make a better life for yourself when those who've drifted from school with basic qualifications get paid the same as you do?

I agree, others above should also have their wages proportionately raised though. The gap between bands is slowly shrinking, including in the public sector- surely a responsible government is addressing this.

I’m loving the way the poorest paid are supposed to absorb the NI increases by not getting their yearly increase but the bosses not so much.

I can tell you think small businesses are bottomless pits of cash. Lots of people.do.

I do live a life 😂 buy food, occasionally eat out. I use lots of other businesses.

Since the expansion of the free hours system a very sizeable proportion of a nurseries income comes from the government. I don’t think any other business is subsidised in the same way. Maybe care homes?

I don’t disagree with most of what you said but some people don’t want a minimum 16 hour contract. A part of my job is going through (anonymous) data. The people who often asess themselves as being really satisfied with life and feeling like the things that they do in life are worthwhile are often people who are semi retired and working on a part time basis less than 16 hours a week. They have generous private pensions and don’t financially need to work. I think introducing a 16 hour minimum would push more of these people outside the workplace.

With 99.9% of private businesses in the UK being SMEs - it's the small and micro businesses who will suffer, yes many may struggle and go under with the NMW and NI but it also means other things:
Moving forward as businesses scale they won't hire as quickly
They will be less willing to 'give someone a chance' why risk a significant wage and difficulty getting rid of someone who wanted a shot but proved unsuitable
Why risk your personal life savings and try and start a business why you're demonised for trying - many simply won't bother or will remain 'one man bands'

Perhaps instead of blaming businesses for not paying enough for unskilled, unqualified workers and look at why workers costs have increased so significantly - why isn't there enough social housing?! Why are so many in unregulated unaffordable private rents?
That's your problem - NOT the small business owner trying to improve their lives and create employment opportunities

80p an hour. Take off tacx, N.I and pension contributions, your left with less than 50p an hour(under £20 a week). It's hardly much when all the other bills will go up too. Can't believe people are against many of us being able to pay for the basics! If that.

A small increase, which doesn't make up for years of wage stagnation, but it's something I guess.

I bet it doesn't, despite the fact it's currently insufficient, and I agree nurseries could be badly affected.

They can't cut staff or hours, as they (rightly!) have to work to the ratios. And the funded hours mean a chunk of their income is fixed. For some nurseries that fixed income may be a considerable portion, for others it might be less so.

That "free" childcare they're handing out ... goodbye nurseries!