You are here: Home - Household Bills - News -

Pay rise for three million workers in April

Written by: Paloma Kubiak
The National Living Wage (NLW) will increase from £8.21 to £8.72 an hour from April, the government has announced.

Low-paid workers aged 25 and over will receive a 6.2% pay rise from 1 April, adding an extra £930 to pay packets for full-time workers.

The government said this is the biggest cash increase ever, improving the pay for 2.8 million people.

It added that it’s on track for the NLW to reach 60% of median earnings by 2020.

For younger workers under the age of 25, they will also see the National Minimum Wage increase. This figure varies between 4.6% and 6.5% dependant on age:

  • 21-24-year olds will see rates rise from £7.70 to £8.20 an hour
  • 18-20-year olds will see rates rise from £6.15 to £6.45 an hour
  • 16-17-year-olds will see rates rise from £4.35 to £4.55 an hour
  • Apprentices will see rates rise from £3.90 to £4.15 an hour.

The increased rates were recommended by the Low Pay Commission, an independent body that advises the government about the National Living Wage and the National Minimum Wage.

Prime Minister Boris Johnson, said: “Hard work should always pay, but for too long, people haven’t seen the pay rises they deserve.

“Our government will put a stop to that, giving nearly three million people from Edinburgh to Eastbourne a well-earned pay rise, including the biggest ever cash boost to the National Living Wage.

“But that’s not all. As we enter a new decade, we’re setting our sights higher, to help people earn more over the next five years and level up access to opportunity across our great country.”

Chancellor of the Exchequer, Sajid Javid, said:We want to end low pay and put more money in the pockets of hard-working families. This latest rise will mean that since we introduced the National Living Wage in 2016, the lowest paid will have had a wage increase of more than £3,600.

“But we want to do more to level up and tackle the cost of living, which is why the NLW will increase further to £10.50 by 2024 on current forecasts.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and the fresh round of walkouts take place tod...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week