National Living Wage survey shows increase in motivation at work

20 January 2016

Findings from part of a new government survey show that 59% of respondents will feel more motivated at work as a result of the increase in their pay packets in April when the new National Living Wage becomes law.

From 1 April 2016 workers in the UK aged over 25 earning the minimum rate of £6.70 per hour will see a 50p increase.

Over a million workers are set to directly benefit from the increase, many of which will see their pay packets rise by up to £900 a year.

More than 70% of workers have said they will feel more positive for themselves and their families as a result of the introduction of the new National Living Wage.

The government survey results coincide with the launch of a new advertising campaign based around real people talking about the positive effect the new National Living Wage will have on their lives. The campaign will highlight the new wage and tell people to find out more by visiting the website: livingwage.gov.uk.

Many UK companies have already pledged to pay at or above the new rate, including Morrisons, Lidl, National Express and Ikea.

The government is continuing to raise awareness to businesses to make sure they are ready to pay the new wage on 1 April 2016. As part of this, it has published a four-step guide for businesses on the living wage website, asking firms to:

  • Check you know who is eligible in your organisation.
  • Take the appropriate payroll action.
  • Let your staff know about their new pay rate.
  • Check your staff under 25 are earning at least the right rate of National Minimum Wage.

HMRC has enforced the National Minimum Wage since 1999 and will also have responsibility for enforcing the new National Living Wage from April 2016. HMRC’s compliance teams will:

  • investigate complaints from workers and third parties that the living wage has not been paid
  • inspect employers’ records to check that they meet their obligation to pay the living wage
  • help employers to understand their obligations under legislation
  • secure pay arrears for workers.

The financial penalty for employers who underpay has increased from 100% to 200% of the underpayment per worker.

The draft The National Minimum Wage (Amendment) Regulations 2016 have been laid before Parliament and will come into force on 1 April 2016.

Further information about the National Living Wage and National Minimum Wage can be found on the Acas website.