The UK National Living Wage is set to increase from £8.91 per hour to £9.50.
The increase will come into effect from 1 April 2022, and will see an 6.6% increase in the National Living Wage for all those aged 23 and over, as reported by the BBC.
However, this increase could negatively affect independent businesses according to NFRN national president Narinder Randhawa who stated, “rather than boosting many shop worker’s incomes, the proposed increase will have the opposite effect of threatening jobs in the sector.
“We would all like to pay our staff more, but the headline increase in the wage rate does not include the increase in National Insurance and pension contributions that employers also have to pay.
According to Randhawa independent retailers have already been hit hard by the Coronavirus pandemic which had meant many have reduced their staff levels and hours and have taken on longer hours themselves.
“This increase to the national minimum wage will only make matters worse. At a time when small businesses need help and support more than ever, this move by the government feels like a kick in the teeth for those that are already struggling to survive.” he added.
Moreover, minimum wage rates for young workers is also set to go increase.
The National Minimum Wage for people ages 21-22 will increase by £8.36 to £9.18 an hour, as reported by the BBC.
Chancellor Rishi Sunak told the BBC that the increase “ensures we’re making work pay keep us on track to meet our target to end low pay by the end of this Parliament”.
As argued by the government this increase will aim to compensate for the individuals from low-paid households after the removal of the £20-a week universal credit uplift, which resulted in accumulative amount of £1000 a year being lost.
In the Budget which will be revealed on 27 October 2021, Sunak is predicted to confirm this rise in the national living wage.