UK minimum wage gets largest ever raise
Millions of UK
workers will see their pay rise after the government made the biggest ever cash
increase in the legal minimum wage.
The government
has announced a 6.2% increase in the National Living Wage (NLW), which applies
to workers aged 25 and over. The NLW will rise from the current rate of £8.21
to £8.72 an hour, in the largest raise since it was introduced two decades ago.
The government
has confirmed that the new rate will start on 1 April 2020 and will result in
an increase of £930 annually for 2.8 million full-time workers earning the NLW.
Workers aged
under 25 earning the National Minimum Wage (NMW) will also see increases of
between 4.6% and 6.5%, depending on their age.
Commenting on
the rise, Bryan Sanderson, Chair of the Low Pay Commission (LPC), said: ‘The
NLW has been an ambitious long-term intervention in the labour market. The rate
has increased faster than inflation, faster than average earnings and faster
than most international comparators.
‘This has
raised pay for millions without costing jobs, although employers have had to
make a variety of other adjustments to deal with the increases.’