Are you financially prepared for National Living Wage increases?

prepared for wage increase

The care industry is likely to be one of the sectors hit hardest over changes in the National Living Wage (NLW) and the National Minimum Wage (NMW).

The Autumn Statement, read in November by Chancellor Jeremy Hunt, announced that there would be increases of around 10 per cent to both the NLW and NMW as well as a reduction in the age at which employees are now entitled to the NLW.

In addition, there were increases in wage rates for apprentices.

Here’s what the situation will look like when changes come into effect in April of this year:

What does this mean for the care industry?

Whilst everyone can agree that carers deserve the right pay for the incredible job they do, the wage rate changes will mean significantly higher wage costs for their employers.

This could mean that care companies that are struggling financially have an even harder time paying their bills.

It has, therefore, precipitated a call to arms amongst care company bosses who are looking for ways to lower costs and protect their business.

What can you do about it?

Here are some quick tips and tricks that could help you offset the coming wage cost increases:

By taking proactive steps and being innovative in your approach, it’s possible to navigate these wage increases while continuing to provide high-quality care.

Remember, the well-being of your clients and staff is paramount, so any cost-saving measures should not compromise the standard of care you provide.

Speak to your accountant if you are worried about your wage costs increasing. The sooner you do, the more you might be able to save!