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National living wageMinimum wage

Penalties to be doubled for flouting national living wage: legislation published

by Jo Faragher 14 Dec 2015
by Jo Faragher 14 Dec 2015 The Government has published legislation confirming the new national living wage of £7.20/Jeff Blackler/REX Shutterstock
The Government has published legislation confirming the new national living wage of £7.20/Jeff Blackler/REX Shutterstock

The Government has now published the legislation that brings into force the new national living wage next year.

The National Minimum Wage (Amendment) Regulations 2016 introduce the new rate of £7.20 for workers aged 25 and over and confirm that the date of introduction will be 1 April.

National living wage resources

XpertHR national living wage survey 2015

Legal timetable: Compulsory national living wage introduced

A national living wage: an important but complex shift in policy

The Regulations also double the financial penalties for which employers will be liable if they are found to have paid any workers below the compulsory minimum.

The other wage bands will be as follows:

  • £6.70 for a worker who is aged 21 years or over (but under 25);
  • £5.30 for a worker who is aged 18 years or over (but under 21 years);
  • £3.87 for a worker who is aged under 18 years; and
  • £3.30 for an apprentice.

However, some employers have expressed concerns about the impact the new statutory minimum could have on budgets – a recent survey by the CIPD found that 54% of employers predicted it would affect their pay bills.

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A number of organisations, including supermarket chain Lidl and retailer Oliver Bonas, have already committed to paying in excess of the national living wage, while the Living Wage Foundation – which recommends a higher rate of £8.25 outside London and £9.40 in the capital – has seen a spike in organisations looking to sign up.

Future changes to the national living wage will be recommended by the Low Pay Commission, with a view to increasing the rate to £9 an hour by 2020.

Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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