Guy Stallard, director at KPMG in the UK, comments on the increase in the National Living Wage announced by the Chancellor in today’s Autumn Statement.
Guy Stallard, director at KPMG in the UK said:
“Today’s announcement will see a significant number of workers aged 25 and above get a pay rise of 30p an hour to £7.50 from next April. This may seem like small change to some, but for many people it’ll make a huge difference.
“With the cost of living higher than it’s ever been, the reality for many is that they are forced to live hand to mouth. The increase in the National Living Wage will go a long way to save swathes of people being caught between the desire to contribute to society and the inability to afford to do so.
“However, it is important that we tackle the issue of low wages for the younger generation too. Low pay blights the prospects of the young and more than two thirds (72 percent) 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 an employer that has been paying the voluntary Living Wage for ten years, our experience is that it delivers real and tangible business benefits like improved staff morale, rise in service standards, improvement in the retention of staff and increase in 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.”
Follow us on twitter: @kpmguk #AS2016
For further information, please contact:
Nahidur Rahman, Senior PR Manager
T: +44 (0) 20 7694 8812
M: +44 (0)73 9376 0775
KPMG Press Office: +44 (0)207 694 8773
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. ng for the next two years.