As we all know, in April 2025 the Government will introduce new National Living Wage (NLW) and National Minimum Wage (NMW) rates, effective from April 2025, which will bring significant changes (and challenges!) for leisure and hospitality operators.

These changes, which are based on the Low Pay Commission’s (LPC) recommendations, will impact payroll costs and operational budgets. 

Changes in National Living Wage rates 

From 1 April 2025, the new wage rates will be: 

• For workers aged 16-17 and apprentices: £7.55 per hour (an increase of £1.15, or 18%).  
• For workers aged 18-20: £10.00 per hour (an increase of £1.40, or 16.3%). 
• For workers aged 21 and over: £12.21 per hour (an increase of 77p, or 6.7%). 

Impact on employers

The leisure and hospitality sectors, known for employing a large number of young and part-time workers, will need to navigate these wage increases carefully. Operators must not only consider their young and part-time workers but also their salaried employees, as many of these may already be close to the minimum rates. 

Operators need to budget for higher wages, including reviewing financial plans and adjusting budgets accordingly, particularly in view of the recent increase to employer’s National Insurance contributions.  

As the National Minimum Wage does not include any pay premiums, such as overtime premiums, employees may want to revisit increased pay premiums for new starters and include this in any review of budgets accordingly.   

Please get in touch if you would like to discuss ways in which you can further reduce your operating costs to ease the impact of these increases.