Chancellor expected to increase national minimum wage

As pubs and bars gear up for Rachel Reeves' Budget announcement on 30 October, many expect the chancellor to announce a rise of 6% to the National Minimum Wage. 

Labour ministers have also suggested that those aged 18 to 20, who currently receive a National Minimum Wage of £8.60 an hour, should be eligible for the same pay as their older colleagues, as first reported in the Times.

Approximately 1.6m people are set to benefit from the national living wage of £11.44 per hour – the minimum for workers aged 21 and above. Many now expect an increase to over £12.12 following commitments from the government to "raise the floor" on wages. 

Earlier this year, UKHospitality reacted to the mandatory surge in business rates and wages. The trade body noted that increases saw the sector's wage bill grow by £3.2bn, representing at least a third of the industry's outgoings, with business rates adding up to an additional £224m. This, paired with an expected rise in National Insurance Contributions for employers, means operators are preparing for the potential financial implications of the Budget on 30 October. 

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