The upcoming increase to the National Living Wage will have a 'massive impact' on farmers who are already facing increased costs, the NFU has said.
The government has accepted the recommendations of the Low Pay Commission and will be raising the national minimum and national living wages from 1 April 2024.
This puts the NLW at £11.44, an increase in £1.02, or 9.8%, which is two-thirds of median hourly pay for workers over the age of 21.
The government has also lowered the age threshold to receive NLW, meaning that all workers over the age of 21 will be eligible to receive it.
The national minimum wage (NLM) for 16-17 year olds and apprentices will be £6.40 per hour, whilst the rate for 18-20 year olds will be £8.60 per hour.
NFU deputy president Tom Bradshaw said that the 'higher-than-expected' increases would likely have a 'massive impact' on agriculture businesses.
“We fully recognise the challenges with the cost of living and we need to recognise the value of our people working in agriculture.
"But wages within the agriculture industry have already seen huge growth, increasing by a third over the past two years."
The amount growers can claim for worker accommodation has increased by almost 10%, following the same percentage increase as the NLW.
This will be £9.99, or a weekly value of £69.93, with Mr Bradshaw calling it "some support for stretched businesses".
He continued: "As the Governor of the Bank of England himself said, agriculture had seen significantly more inflationary pressures due to a steep rise in energy costs, more than any other sector.
“That is why we need the wider supply chain to share this additional cost burden or risk facing further increased food price inflation, at a time when people can ill-afford it."
