The National Living Wage (NLW) is set to increase by over a pound an hour from April, marking the biggest rise to date in a bid to end low pay.
The almost 10% pay boost will see NLW rise from £10.42 to £11.44 an hour and is worth over £1,800 a year for a full-time worker. Eligibility for the NLW will also be extended by reducing the age threshold to 21-year-olds for the first time. A 21-year-old will get a 12.4% increase, from £10.18 this year to £11.44 next year, worth almost £2,300 a year for a full-time worker.
National Minimum wage rates for younger workers will also increase. 18-20-year-olds will get a wage boost to £8.60 per hour – a £1.11 hourly pay bump.
Chancellor of the exchequer, Jeremy Hunt said: Next April all full-time workers on the National Living Wage will get a pay rise of over £1,800 a year. That will end low pay in this country, delivering on our manifesto promise.
The NLW has helped halve the number of people on low pay since 2010, making sure work always pays.
The NLW was introduced in 2016 and currently sets the minimum hourly pay a person over the age of 23 earns when working. The new rate will now apply to 21- and 22-year-olds and means that the government has met its ambitious target of lifting the NLW to two-thirds of median earnings by 2024, ending low hourly pay for those on the NLW.
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