SIBA response to the Chancellor’s announced increase to the National Living Wage and National Minimum Wage
“Cost of living pressures are very real for people and we all want to see living standards rise. However, the responsibility of delivering wage increases are most felt by small businesses including small independent breweries who are already facing significant pressures. We have lost more than 100 breweries in the past year and more tell us they are on the edge. If they close there won’t be any jobs at all.
“Brewing is a skilled job and we want to encourage more young people to enter the sector, but continuing to close the aged based pay gap does not take account of the additional training and development that young people need.
“Tomorrow’s Budget is the opportunity for the Chancellor to offset these challenges for breweries by expanding the Draught Relief to 20% or more. This would mean that beer mostly sold in pubs has a lower rate of beer duty, bringing benefits to beer drinkers and small breweries around the country.” Andy Slee, SIBA Chief Executive
The Government’s statement can be viewed via: https://hmtreasury-newsroom.prgloo.com/news/chancellor-announces-increase-to-the-national-living-wage-and-national-minimum-wage
Detail announced:
- From 1 April 2026, the NLW will rise by 4.1% to £12.71 per hour for eligible workers aged 21 and over. This will increase the gross annual earnings of a full-time worker on the NLW by £900, benefiting around 2.4m low-paid workers.
- The NMW rate for 18–20-year-olds will also increase by 8.5% to £10.85 per hour, narrowing the gap with the NLW. This will mean an annual earnings increase of £1,500 for a full-time worker, and marks further progress towards the government’s goal of phasing out 18-20 wage bands and establishing a single adult rate.
- The NMW for 16–17-year-olds and those on apprenticeships will increase by 6% to £8 per hour.
For further questions to SIBA contact political@siba.co.uk
