The government has responded to the recommendations of the Low Pay Commission regarding increases to the National Living Wage (NLW) and the National Minimum Wage (NMW). The government has accepted the recommendations which will come into effect in April 2020, subject to Parliamentary approval. The following changes are set to take effect:
- The NLW for workers aged 25 and over will increase from £8.21 to £8.72 per hour.
- The NMW for 21- to 24-year-olds will increase from £7.70 to £8.20 per hour.
- The NMW for 18- to 20-year-olds will increase from £6.15 to £6.45 per hour.
- The NMW for 16- to 17-year-olds will increase from £4.35 to £4.55 per hour.
- The apprentice rate for those aged under 19 or in the first year of an apprenticeship will increase from £3.90 to £4.15 per hour.
The NLW is expected to rise to around £10.50 an hour by 2024, following a recent pledge made by the Chancellor, to increase the rate to two-thirds of median earnings. The Chancellor has also announced plans to expand the reach of the NLW to cover workers aged 23 and over from April 2021, and to those aged 21 and over within five years.