Care providers advised to start preparing for the new National Living Wage

The Government is urging care providers along with other businesses in the UK to take simple steps now to prepare for the introduction of the new National Living Wage in April 2016.

The new wage will become law on 1 April next year and businesses are being advised to:

• know the correct rate of pay - £7.20 per hour for staff aged 25 and over

• find out which staff are eligible for the new rate

• update the company payroll in time for 1 April 2016

• communicate the changes to staff as soon as possible

The advice coincides with a new poll by the Department for Business, Innovation and Skills (BIS) which revealed 93 per cent of bosses agree the new wage is a good idea, with 88 per cent believing it will lead to higher productivity and 83 per cent saying it will make staff more loyal to their company.

Business Minister Nick Boles said: “The Government’s new National Living Wage will provide a direct boost to over two-and-a-half million workers in the UK – rewarding and providing security for working people.

“I am urging businesses to get ready now to pay the new £7.20 rate from 1 April 2016. With just under four months left, there are some easy steps employers can take to make sure they are ready.

“By taking these measures, companies will be able to properly reward their staff and avoid falling foul of the law when it takes effect.”

The survey also revealed that 86 per cent of businesses said it would boost staff morale and 82 per cent believed customers were likely to return if the business paid the right rates of pay.

Despite the popular support for the measure, the poll also revealed that many firms were yet to take key steps to be prepared with only around 45 per cent having updated payroll to take account of staff aged 25 and over on 1 April 2016 and just 39 per cent had communicated the upcoming changes to staff.

The new National Living Wage follows recent rises in the National Minimum Wage rates to:

£6.70 for 21-year-olds and over

£5.30 for 18 to 20-year-olds

£3.87 for under 18-year-olds

£3.30 for apprentices (this rate applies to all apprentices in year 1 of an apprenticeship, and 16 to 18 year old apprentices in any year of an apprenticeship)

Employers can find out more by visiting www.livingwage.gov.uk.