According to data from S4labour, the 9.8% increase to NLW announced yesterday by the Chancellor will mean an increase of 11.5% to costs for operators when considering the weighted impact of age distribution in the industry.
The new wage of £11.44 will apply to employees over 23s, who make up 70% of the hospitality workforce, as well as the 9% of workers who are 21 to 22 years old.
The statistics also reveal that 14% of industry workers fall into the 18 to 20 bracket, with their new wage rising by 14.8% to £8.60. Under 18s, who make up 7% of the industry’s workforce, will see a 21.2% increase in pay.
Assuming all workers are paid at minimum wage, these increases will bring hourly labour costs up 11.5% for operators.
Alastair Scott, CEO of S4labour, commented: “The headline rate at 9.8% was going to be tough enough to manage, without factoring in the high proportion of young people working in our industry. This makes it an even bigger challenge, just when we thought we might be able to get back onto an even keel.”