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<p>On current Office for Budget Responsibility forecasts a full-time National Minimum
Wage (NMW) worker will earn over £4,200 more by 2020 from the National Living Wage
(NLW) in cash terms. 2.9m low wage workers are expected to benefit directly, and up
to 6m in total could see their pay rise as a result of a ripple effect up the earnings
distribution.</p><p>What is allowed to be deducted from a salary is tightly controlled.
The Government enforces this robustly, and is bolstering its resources to bear down
on non-compliance through further increasing HMRC’s NMW/NLW enforcement budget for
2016/17.</p><p>Employers can choose to set and change the overall, wider remuneration
level as long as they are paying at or above the NMW / NLW minima, but they will also
need to consider whether that package, overall, remains competitive to retain and
develop the people and talent they need for their businesses.</p><p>The Government
has also taken measures to support businesses. First, from April 2016, the Government
has increased the employment allowance from £2,000 to £3,000 from April 2016. We are
also cutting corporation tax from 20% to 17% by the end of the Parliament, which will
benefit over a million firms of all sizes and give the UK the lowest rate of corporation
tax in the G20. The cuts since 2010 will be worth almost £15bn a year to businesses
by the end of Parliament. Furthermore, the Government is cutting the burden of business
rates by £6.7 billion over the next 5 years.</p>
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