[UK] Cost of minimum wage staff to employer has risen by 20%

In the UK, new research shows that hiring minimum wage workers costs employers 20 per cent more today than in 2024. That figure rises to 31 per cent more for 18- to 20-year-olds, ABC Money reports.

On November 4, the Centre for Policy Studies (CPS) released the research. It reveals that the annual cost of employing a full-time worker on the National Living Wage will reach £26,900 from April 2027, climbing 20 per cent from £22,438 in 2024.

CPS reportedly found that the cost for 18- to 20-year-olds will be £20,511 in 2027, from £15,652 in 2024. A rise of 31 per cent, or £4,859.

Daniel Herring - the CPS head of fiscal and economic policy - said, "Since 2024, the cost has increased by 20%, while inflation has been just 10% over that period."

In its analysis, the CPS cites the inflation figure as 10.1 per cent, meaning the adult rise is around double inflation and the 18 to 20 rise around triple.

The hourly National Living Wage for those aged 21 and over is set to increase from £12.71 to £13.21 in April 2027.

Source: ABC Money

(Link and quote via original reporting)

In the UK, new research shows that hiring minimum wage workers costs employers 20 per cent more today than in 2024. That figure rises to 31 per cent more for 18- to 20-year-olds, ABC Money reports.

On November 4, the Centre for Policy Studies (CPS) released the research. It reveals that the annual cost of employing a full-time worker on the National Living Wage will reach £26,900 from April 2027, climbing 20 per cent from £22,438 in 2024.

CPS reportedly found that the cost for 18- to 20-year-olds will be £20,511 in 2027, from £15,652 in 2024. A rise of 31 per cent, or £4,859.

Daniel Herring - the CPS head of fiscal and economic policy - said, "Since 2024, the cost has increased by 20%, while inflation has been just 10% over that period."

In its analysis, the CPS cites the inflation figure as 10.1 per cent, meaning the adult rise is around double inflation and the 18 to 20 rise around triple.

The hourly National Living Wage for those aged 21 and over is set to increase from £12.71 to £13.21 in April 2027.

Source: ABC Money

(Link and quote via original reporting)