4 April 2023
Millions of lowest-paid workers receive a pay increase
Millions of the lowest-paid workers across the UK received a pay increase as the National Minimum Wage and National Living Wage rise came into effect.
The National Living Wage increased by 9.7%, up to £10.42 for workers aged 23+, and an increase for younger workers on the National Minimum Wage.
The full increases from 1 April 2023 are:
- National Living Wage (23+) has increased 9.7%, from £9.50 to £10.42
- National Minimum wage (21-22) has increased 10.9%, from £9.18 to £10.18
- National Minimum Wage (18-20) has increased 9.7%, from £6.83 to £7.49
- National Minimum Wage (under 18) has increased 9.7%, from £4.81 to £5.28
- Apprentice Rate has increased 9.7% from £4.81 to £5.28
- The Accommodation Offset also increased 4.6% from £8.70 to £9.10
Click here for further details.
Government launches campaign to help businesses drive down energy bills
The UK government launched a new campaign to help businesses, charities, and public sector bodies increase energy efficiency and reduce bills by making simple changes at low-to-no cost.
The campaign, targeted at small and medium-sized businesses, will offer guidance on how organisations can make significant savings while cutting emissions, from installing light and heating timers to turning down boiler flow temperature and changing light bulbs.
Advice offered on the new government website will be continuously updated with sector-specific guidance, successful case studies and any new, relevant schemes. Key actions advised include:
- Undertaking an energy review
- Installing SMART meters
- Reviewing tariffs
- Installing light timers and changing lightbulbs
- Timing heating and turning down boiler flow temperature
Energy Bills Discount Scheme
Organisations across the country will start receiving money off their energy bills through the new Energy Bills Discount Scheme. It comes as wholesale gas prices are at levels not seen since before Russia's invasion of Ukraine, with eligible UK businesses, charities, public sector bodies and others to receive the discount until 31 March 2024.
Customers do not need to apply for the universal discount, with suppliers automatically factoring it into the bills of all eligible non-domestic customers.
The new scheme replaces the Energy Bill Relief Scheme, which paid out £5.6 billion by late March – around £35 million a day to cut energy costs for businesses.
Energy advice for Welsh businesses
Business Wales, the North Wales Business Council, Ambition North Wales, in collaboration with the Welsh Government Energy Service, has summarised some 'low and no cost' energy efficiency solutions to help businesses and individuals mitigate against rising energy costs this year:
- Adjust heating system timings, temperatures and rooms – reducing the set point temperature by just 1ºC can save you up to 8% on your energy consumption. Turning off the heating one hour before your business closes should mean the heat is sufficiently retained for that 'final' hour.
- A room will heat up at the same rate whether the thermostat is set to 20ºC or 25ºC – so resist the urge to 'boost' the temperature when switching on your heating.
- Properly insulating your windows, walls, doors, roof, chimneys, and pipes will reduce your energy use, cutting emissions and saving you money on bills. According to CDP data, you can make the money you spend back in as little as a year, and on average most companies see payback in 4 years. Arranging for a thorough survey and audit will help identify the most appropriate measures for your building.
New legislation to modernise Business Rates system
New legislation introduced into Parliament on Wednesday 29 March, will support businesses by modernising the business rates system to incentivise property improvements and support more frequent revaluations.
The Non-Domestic Business Rating Bill will introduce more frequent valuations, to take place every three years instead of the current five, meaning those with falling values will see their bills drop sooner.
It will also provide new business rate improvement relief, so businesses making qualifying building improvements will avoid higher business rate bills for 12 months.
Read here for further details.
Campaigning for you – energy update
NHBF has submitted a response to the energy regulator Ofgem's Call for Input into its review of the non-domestic energy market. Our response used information and intelligence from Members and businesses via the State of the Industry quarterly surveys and case studies of treatment by energy suppliers shared by social media. We shared examples of high tariffs, high-security deposits and upfront payments, delays in passing on government discounts and reliefs and some suppliers refusing non-domestic contracts completely.
Energy prices remain a top concern for the sector. Our recommendations to Ofgem and the Government in the Call for Input are to:
- Be more proactive about providing advice and guidance to businesses, including navigating issues with suppliers and best practices on what they should expect.
- Action from Ofgem in encouraging suppliers to allow businesses locked into high tariffs to pay bills back over a longer period.
- For the Government to review the impact of the Energy Bill Discount Scheme after six months, particularly if it's clear that many businesses have been forced to close due to high energy costs.
NHBF has been invited to take a role on the Ofgem Small & Medium Sized User Group (SUG) in order to resolve some of the issues for businesses and encourage an ongoing dialogue with the sector.