National Living Wage and National Minimum Wage impact on business costs

The National Living Wage (NLW) for people aged over 21 will increase from 1st April 2025, to the hourly rate of £12.21 – this represents an increase of 6.7%.

The True Cost of Employment report, published by SGF and the University of Stirling, highlights the real cost of the NLW for employers, when taking into associated costs for employers such as Statutory Sick Pay and NI costs. It is also an important aspect of our evidence submitted to the Low Pay Commission consultation, each year.

The NLW and National Minimum Wage (NMW) rates from April 2025 are set out here: https://www.gov.uk/national-minimum-wage-rates

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* 1. How much will the proposed increases to the NLW & NMW impact on the viability of your business?

A great deal

Significantly

A moderate amount

Somewhat

Not at all

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* 2. Over the course of the financial year 2024/25, has turnover in your business increased to match the proposed 6.7% increase to the NLW?

Yes, definitely

Yes, probably

I don't know

No, probably not

No, definitely not

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* 3. Taking into account the proposed increase to the NLW & NMW, how likely are you to employ more staff or increase the number of staff hours in your business?

Very likely

Likely

Neither likely nor unlikely

Unlikely

Very unlikely

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* 4. If you personally work more than 45 hours per week, in order to keep staff costs down, please tell us how many additional hours you work on average?

Some

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* 5. With an increasing number of job roles coming under the NMW & NLW, some businesses are investing in staff facilities and wellbeing in order to improve retention. Such as improved benefits, lunch facilities, working environment and shift patterns etc.

What action(s) has your business taken to improve staff retention?

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* 6. If you responded to Question 5, what was the approximate additional cost per staff member per month? Based on full-time employment (ie. 40hrs/wk).

£0

£500

£1000

(For Questions 7 to 13) How much are you going to spend this year on each of the elements below, per full-time staff member? Is it going to be similar level to previous years?

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