Low-paid workers will receive a 6.2% pay rise with a new National Living Wage (NLW) of £8.72 per hour.
The new rate starts on 1 April 2020 and results in an increase of £930 over the year for a full-time worker on the National Living Wage. Younger workers who receive the National Minimum Wage( NMW) will also see their pay boosted with increases of between 4.6% and 6.5%, dependant on their age.
Commenting on this the chancellor of the exchequer, Sajid Javid, said:
” This latest rise will mean that since we introduced the National Living Wage in 2016, the lowest paid will have had a wage increase of more that £3,600.
But we want to do more to level up and tackle the cost of living, which is why the NLW will increase further to £10.50 by 2024 on current forecasts”.
The Government has fully accepted the Low Pay Commission’s recommendations after they consulted stakeholders such as unions, businesses and academics, before recommending the NLW and NMW rates to the Government.
The Chancellor has also announced his plans to expand the reach of the National Living Wage to cover workers aged 23 and over from April 2021, and to those aged 21 and over within five years. This is expected to benefit around 4 million low paid workers.
2020 National Minimum Wage rates will also increase:
21-24 year old – A 6.5% increase from £7.70 to £8.20
18-20 year old -A 4.9% increase from £6.15 to £6.45
Under 18s – A 4.6% increase from £4.35 to £4.55
Apprentices – A 6.4% increase from £3.90 to £4.15