NLW rise could affect you more than you think

The Equestrian Employers Association (EEA) is urging businesses to undertake a financial review following the Chancellors announcement.

As the government accounced the April 2021 increases to statutory minimum wage rates, it can confirmed the age at which workers become eligible for the National Living Wage will reduce to 23.

The Chancellor announced in the Winter Review that the government will accept a recommendation from the Low Pay Commission to increase the National Living Wage next year by 2.2%, to £8.91 an hour – but this has been extended to those aged 23 and over.

This will mean that in April workers aged 23-24 years old will receive a substantial pay rise of almost 9%. After a challenging year this will come as a blow to many equestrian employers.

Based on a 50 hour week this will see 23 and 24 years olds receive an additional 71 pence per hour, which will relate to an additional £35.50 a week/£1,846.08 a year.

This is compared to those already on the current National Living Wage (25 years and over), who will see an increase of 19p per hour (2.2%) which equates to £9.50 a week/£454 per year based on a 50 hour week).

With a predominantly younger workforce, it will have a significant impact on the equestrian industry.

Accepting “in full” the Low Pay Commission’s recommendations, the Chancellor also announced that that the full national minimum wage rate, which from April 2021 only apply for those aged 21-22, will also increase by 2.0% to £8.36.



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