71% concerned about viability

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.

The key findings of the survey revealed:

• 96% 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.
• 85% of respondents reported 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.

EEA Chair, Tullis Matson agrees, adding,

The EEA is recommending that employers plan ahead and budget for the imminent increase to ensure that their business remains viable. 

Read the report here 

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