The Chancellor, Rachel Reeves, has announced the National Living Wage will increase from £11.44 to £12.21 an hour, ahead of her budget today.
This 6.7% increase, which is worth £1,400 a year for eligible full-time workers, is says the government a significant step in its promise to ensure the minimum wage is a genuine living wage.
The National Minimum Wage for 18 to 20-year olds will also rise from £8.60 to £10 an hour – the largest increase on record (16.3%). It will mean a full-time younger worker eligible for the rate will see their pay boosted by £2,500 next year. The Chancellor said she wants to align the National Minimum Wage and National Living Wage to create a single adult wage rate.
The rate for 16-17 year olds and the apprentice rate will rise by £1.15 an hour to £7.55. That is an 18% increase and means someone working 37.5 hours a week would earn £14,762 a year.
