In a survey, conducted by the Equestrian Employers Association (EEA), 71% of employers stated that they don’t think their business will cope with the increase in the National Minimum Wage (NMW) and National Living Wage (NLW) in the next two years.
On 1st April 2022, the NLW will increase by 6.6%, which is more than twice the current 3.1% rise in the cost of living, and takes the hourly rate for workers aged 23+ from £8.91 to £9.50. For a groom earning NLW and working a 45 hour week, this will mean an annual pay rise of £1,380.60.
96% of the employers surveyed said that they were concerned about the immediate impact that the forthcoming increase in the NMW and NLW will have on their business.
33% of employers reported an annual wage bill increase of £3k-£5k, with 9% having to find an additional £10k in wages, with 85% of respondents reporting that they will have to consider increasing costs to clients.
The industry can expect further increases over the next two years as the Chancellor pledges to increase the National Living Wage to £10.50 per hour.
Lucy Katan, EEA Executive Director made a speech at National Equine Forum on March 3rd, based on the findings of the report and the crisis that the industry faces, “This is a very concerning time as the NMW rise adds enormous pressure to equestrian businesses who are already under strain. Costs to clients must rise across the sector to protect the viability of the industry and the workforce.”
EEA Chair, Tullis Matson, added, “Equestrian employers will find themselves under pressure to meet increases in staff wage bills, and businesses could suffer as a result of rising staff costs.”
“Employers should start planning now on how they can deal with these costs and any changes they may need to make to protect their business. It is important they understand the need to calculate necessary cost increases for their clients and customers if their business is to cope.”
The full survey findings and report can be found here: https://bit.ly/EEA-NMWreport-2022
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