They are double those previously payable for non-compliance with the National Minimum Wage Act 1998 (increased from 100% of arrears owed to 200%), although this is halved if paid within 14 days.
The enforcement budget is due to double, and the creation of a dedicated HM Revenue and Customs non-compliance team to pursue criminal prosecutions was announced.
[9] Research published by the Resolution Foundation in March 2016 indicated that the introduction of the measure would immediately raise the incomes of those on minimum wage by 10.8%.
[6][10] In November 2023, Jeremy Hunt announced that all workers over 21 would receive the National Living Wage of £11.44 per hour from April 2024 onwards.
[11] A survey conducted in November 2015 by the Resolution Foundation and the Chartered Institute of Personnel and Development revealed that the policy is expected to have its greatest impact in the retail, hospitality and healthcare sectors.
[9] A report by Moody's Investors Service stated supermarkets may employ a higher proportion of under-25 year olds to reduce employee costs.