Guy Stallard, director at KPMG in the UK, comments on the new National Minimum Wage rates for 16-24 year olds coming into place on Saturday, 1 October. He said:
“It is important we tackle the issue of low wages for the younger generation, and this is a good first step towards achieving this. Low pay blights the prospects of the young and more than two thirds (72%) of 18-21 year olds earn less than the voluntary Living Wage (paid at £8.25 nationally and £9.40 within London). This lack of financial freedom means those finishing school and university cannot fly the nest and gain the independence other generations have enjoyed, despite being in employment.
“As employers we can take active steps to address this, by paying the voluntary Living Wage. This also delivers real and tangible business benefits. In our own firm it has improved staff morale and driven a rise in service standards, improved the retention of staff and increased our productivity.
“It may not be possible or practical for everyone, but all organisations need to do what they can to address the problem of low pay. Of course, change cannot happen instantly, but making an initial assessment is an important first step.”
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Notes to Editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.