Exact date National Living Wage increase will boost yearly pay by £1,000 | Personal Finance | Finance
Millions of workers across the UK can soon expect to see their wages rise by over £1,000 a year following an increase to the National Living Wage.
The plans to raise the rate were announced during last month’s Conservative Conference, in line with Chancellor Jeremy Hunt’s commitment to the recommendations of the Low Pay Commission, an independent Government advisory body.
The National Living Wage (NLW) sets the minimum hourly wage for people aged 23 and above and new rates are determined every year by the Government.
Based on the Low Pay Commission’s forecasts, the National Living Wage will increase from £10.42 to over £11 an hour next year, but the exact figure is yet to be determined.
Successive rises since its introduction in July 2015 will mean a full-time worker on the National Living Wage will be over £9,000 better off than they would have been in 2010. Although, inflationary pressures mean everyday expenses cost more than they did then.
When will the National Living Wage increase?
The rate for the National Living Wage changes on April 1 every year. At present, over two million people on low pay are expected to benefit from the rise.
Additionally, the rate for the National Minimum Wage (NMW), which is aimed at those of at least school-leaving age, will also rise on April 1. Minimum wages in this category differ depending on age and whether a person is an apprentice.
What are the current rates?
- National Living Wage (23+) – £10.42 per hour
- 21-22-year-old rate (NMW) – £10.18 per hour
- 18-20-year-old rate (NMW) – £7.49 per hour
- 16-17-year-old rate (NMW) – £5.28 per hour
- Apprentice Rate – £5.28 per hour
- Accommodation Offset – £9.10 per hour.
The Chancellor will likely confirm how much the rates will rise during the Autumn Statement, set to take place on November 22.
However, the Living Wage Foundation, which has been campaigning for fair pay for employees based on the cost of living since it officially launched in 2011, has recently announced a rate rise to a minimum of £12.
The Living Wage Foundation sets a “Real Living Wage” every year based on rising living costs and applies to everyone aged 18 and over.
There are now 14,000 Living Wage Employers, including some FTSE 100 companies, as well as names like Aviva, Everton FC, IKEA and LUSH, who have voluntarily committed to pay the real Living Wage instead of the Government’s National Minimum Wages.
As per the Living Wage Foundation’s recommendations announced in October, the Living Wage outside of London is now set at £12 per hour. Meanwhile, the London Living Wage is £13.15 per hour.
Katherine Chapman, Living Wage Foundation director, said: “As inflation eases, we cannot forget that low-paid workers remain at the sharp end of the cost of living crisis. Low-paid workers continue to struggle with stubbornly high prices because they spend a larger share of their budget on food and energy. These new real Living Wage rates are a lifeline for the 460,000 workers who will get a pay rise.
“During these tough economic times, it is heartening that record numbers of employers are signing up to join the Living Wage movement, protecting everyone who works for them – including cleaners – from rising prices and seeing the benefits of a more motivated and engaged workforce.
“The real Living Wage has never been more important and we encourage those who can to join the 14,000 Living Wage employers across the UK who are committed to always pay a wage that covers the cost of living.”
Denial of responsibility! yesspdf.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at firstname.lastname@example.org The content will be deleted within 24 hours.