A new National Living Wage is to be introduced in 2020 and we will see low paid workers earn nearly £1000 more each year.
This new rate will be introduced on April 1st, 2020 and will take the hourly rate for over 25’s from £8.21 to £8.72. The change will also affect younger workers with the national minimum wage being given a boost. This will be an increase of between 4.6% and 6.5% depending on age. 21- 24 year-olds will see a 6.5% increase, which would mean the current minimum wage going from £7.70 to £8.20 an hour.
These changes from the government suggest that they are keen to show that they will deliver on the working-class votes that they newly acquired from labour at the end of last year (12th December 2019) in the general election.
“Hard work should always pay, but for too long, people haven’t seen the pay rises they deserve,” Prime Minister Boris Johnson.
These pay rises are due to a conservative promise made at their annual conference, where they pledged to increase the national living wage to £10.50 an hour over the next five years if the economic conditions allow.
The National Living Wage for 25-Year-olds will increase by 6.2% from £8.21 to £8.72
21- 24 year-olds will see a 6.5% increase, taking them from £7.70 to £8.20
18-20 year-olds will receive an increase of 4.9%, £6.15 to £6.45
4.6 % increase for under 18’s, £4.35 to £4.55
Finally a 6.4% increase from £3.90 to £4.15 for apprentices.
What are your thoughts on the increases? Let us know.
If you need any help or more information about these changes and how they will affect your business please do not hesitate to get in touch with the team here at Crosby HR.