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Retailers to receive £25.6m living wage bill by 2020

Large retailers could see their wage bills increase by an average of £25.6m by 2020 with the introduction of the new living wage, according to a new report from PwC.

The accountancy firm surveyed more than 100 companies with an average of 11,000 employees and found that businesses expect to pay an extra £1.6m in wages next year, equating to £11m by 2020.

Retailers expect the sharpest jump both in 2016 and over the next five years, with average wage bills rising by £3.8m in 2016 and £25.6m by 2020.

“While many employers should be able to afford the increase to their wage bill, the disproportionate impact on sectors employing a large number of lower paid workers such as retail, transport and logistics, healthcare and hospitality and leisure cannot be ignored,” said John Harding, employment tax partner at PwC.

“Organisations must have a plan to deal with these costs, that isn’t simply passing them onto consumers or reducing headcount.”

@Tara_Hounslea

Readers' comments (1)

  • Do you think the Chancellor has realised that this will
    result in:
    A) reduced headcount
    B) reduced working hours
    C) more zero hour contracts
    D) A reduction in other perks
    Etc Etc
    With a reduction in Tax Credits it will mean a lot of employees will suffer a significant HIT.
    Meanwhile a number of businesses unable to pass the costs on will be put out of business or will close because its not worth staying open. Result more unemployed, paying no taxes !!!

    Unsuitable or offensive? Report this comment

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