POLL: How much of an impact will the NLW rise have on your business?

This news has been accompanied by the news that 21 and 22-year-olds will receive the NLW from April, bringing almost 3m more people into the wage bracket.

But what impact will this have on your business? Vote in our poll to let us know.

The Government highlighted this was the biggest cash increase in the NLW in more than a decade.

Furthermore, the age bracket for eligibility will change in April next year with the higher rate being available for 21-year-olds.

For workers aged 18 to 20, it will be £8.60, under 18s it will be £6.40 and the same rate for apprentices.

However, industry leaders voiced their concerns about the increase, amid warnings the hike could put many firms “over the edge”​​.

Trade body UKHospitality chief executive Kate Nicholls said: “This is a significant increase in the NLW, rising 10% and 28p more than originally forecast.

“Such a rise will have significant knock-on impacts on costs as businesses struggle to maintain appropriate wage differentials across all their staff, including at more experienced levels.

“If businesses are expected to deliver these wage levels, there must be action to drive down costs in other areas.”

Since its inception seven years ago​​, the NLW rate has increased by almost 60% for workers in their 20s.

Sector bosses fear the Government announcement on a rise in the NLW could put many hospitality businesses “over the edge”.

The move to increase the NLW to £11.44 in April next year, rising from its current level of £10.42 has been accompanied by the news that 21 and 22-year-olds will receive the NLW from April, bringing almost 3m more people into the wage bracket.

Loungers founder-chairman Alex Reilley said: “Lots of Tory MPs back-slapping about their inflation-busting national living wage increase. However, a reminder that it’s business that pays for this (NOT the Govt) and that the increase drives more money into the Treasury’s coffers through increased income tax, employees NI and employers’ NI receipts.

“Don’t get me wrong this is great news for millions of people (it’s more than the 2m the Govt suggests as this has a knock-on effect in the labour market). But, without targeted tax cuts [in the Autumn Statement today], this will force countess small hospitality businesses over the edge.”

Reilley continued: “It also only serves to pour petrol onto the embers of the inflation fire as prices will have to be increased to mitigate higher labour costs.”