News

National Minimum Wage increases on 01 April

Tuesday, 02 April 2024

The increases to the National Minimum Wage began on 01 April – has your equestrian business prepared? The changes apply to all equestrian businesses and employers, and given the tough economic conditions at present, many will need to adapt to remain compliant and viable – and employees should be aware of the new rates.

The rates of pay for all age bands have increased as well as a significant change to the age eligibility threshold of the National Living Wage, which has been lowered to 21 years.

To summarise:

Age	23 and over	21 to 22	18 to 20	Under 18	Apprentice
April 2023 (previous)	£10.42	£10.18	£7.49	£5.28	£5.28
Age	21 and over		18 to 20	Under 18	Apprentice
April 2024 (new rates)	£11.44		£8.60	£6.40	£6.40

 

The new rates are applied to the first full pay cycle after 1 April.

Employers

It’s a legal obligation to pay the National Minimum Wage and employers who underpay their staff face a fine of 200% of the arrears – so the penalty is high. Consider:

• Use the National Minimum Wage and Living Wage calculator for Employers.
• Maintain comprehensive records for details of working hours, pay rates and any deductions or allowances.
• Keep employee contracts transparent regarding pay rates, working hours and overtime calculations. This will also helps avoid misunderstandings further down the line.
• Seek professional advice if you’re unsure about any aspect of National Minimum Wage compliance. Consult with HR specialists, payroll experts or HMRC directly.

This increase will cause difficulties for many businesses, especially those who are already under pressure from the rising cost of living, but there are things you can do to help meet the demand of increased wages:

• Streamline the daily running of your business, for example, reduce staff hours where possible, without compromising equine welfare standards. Be aware this requires clear conversations with your employees and changes to contracts.
• Cut business expenses, for example, consider switching energy suppliers and turn off lights, appliances and machinery when not required. Review insurance providers and policies at renewal time – do you have the most appropriate and economical cover in place?
• Consider buying second-hand equipment when possible.
• Increase costs of your service offerings. Make sure to communicate with your clients so they know what to expect and explain why the rise is necessary.

Employees

The annual increase in National Minimum Wage helps employees afford rising costs of living, but don’t assume you’re being paid the correct amount:

• Make sure you know the new rates.
• Check you’re getting paid the correctly with the National Minimum Wage and Living Wage calculator for workers.
• Record all hours that you work and make sure it’s clear how overtime is accounted for. This will be included in your contract with your employer.
• If you’re not being paid the National Minimum Wage you can speak to your manager to try to resolve this, or call the Acas helpine for free confidential advice, or submit a complaint to HMRC.

Find out more about the National Minimum Wage rises here:

National Minimum Wage and National Living Wage rates - GOV.UK

Equestrian Employers Association- National Minimum Wage

MoneySavingExpert- National Minimum Wage