The 2020 National Living Wage comes into effect today (Wednesday 1 April), a 6.2% increase on the previous rate
The National Living Wage (NLW) will increase on Wednesday 1 April to £8.72, giving a pay rise to thousands of workers at the frontline of the UK’s response to Covid-19. This rise follows recommendations made to the Government by the Low Pay Commission (LPC) in the autumn. It means the rate reaches the target of 60 per cent of median earnings, originally set by the Government in 2015.
In the 11 March Budget, the Government confirmed its ambition for the NLW to continue increasing towards a new target of two-thirds of median earnings by 2024. It asked the LPC to advise on whether the economic evidence warranted these increases. The LPC will make its recommendations to Government on the 2021 National Minimum Wage rates in October.
The new rate results in an increase of £930 over the year for a full-time worker on the National Living Wage. The rise means the government is projected to meet its target for the NLW to reach 60% of median earnings by 2020.
The full set of rates can be seen below:
- the National Living Wage for those aged 25 and over will increase by 6.2% to £8.72 an hour
- the National Minimum Wage for those aged 21 to 24 is increasing by 6.5% to £8.20 an hour
- the National Minimum Wage for those aged 18 to 20 is increasing by 4.9% to £6.45 an hour
- the National Minimum Wage for those aged under 18 is increasing by 4.6% to £4.55 an hour
- the rate for apprentices is increasing by 6.4% to £4.15 per hour
Mark Eastwood, MP for Dewsbury said:
“Very welcome news for many people across the Dewsbury constituency that the statutory minimum wage will increase from today to make sure that workers are fairly rewarded – particularly during this time of disruption.”
In light of the pressure on businesses caused by the outbreak of COVID-19, the government has unveiled a comprehensive package of support to protect businesses and individuals, including an initial £330 billion of guarantees for businesses, £20 billion in business rates support and a new Coronavirus Job Retention Scheme to help pay people’s wages.
Source: GOV.UK
