Minimum wage increase

Millions of UK workers will see their pay rise in April 2020. The government is making the biggest ever increase in the legal minimum wage.

The government has announced a 6.2% increase in the National Living Wage (NLW) for those 25 and over. The NLW will increase from £8.21 to £8.72 an hour, a 51p increase. This is the largest raise since the NLW was introduced over 20 years ago.

Each age group is getting a raise in their pay:

Group2019/202020/21Amount Increase% Increase
Apprentices£3.90£4.1525p6.5%
Under 18s£4.35£4.5520p4.6%
18-20 year olds£6.15£6.4530p4.9%
21-24 year olds£7.70£8.2050p6.5%

The new rate will start on 1 April 2020. Around 2.8 million full-time workers earning the NLW will receive an increase of £930 annually.

Chair of the Low Pay Commission (LPC), Bryan Sanderson, commented: ‘The NLW has been an ambitious long-term intervention in the labour market. The rate has increased faster than inflation, faster than average earnings and faster than most international comparators.

‘This has raised pay for millions without costing jobs, although employers have had to make a variety of other adjustments to deal with the increase.’

More information here.

“These increases seem great for minimum wages earners. However, we must hold our judgement until after Brexit. We still do not know the effects our economy will face.”

Quote from Nigel Holland