It was recently announced in the Autumn Statement that the National Living Wage will increase from the current £7.20 per hour for those aged 25 and over, to £7.50 per hour as from the 1st April 2017. This represents an increase of 4%, and equates to an incresae of over £500.00 per annum for a full time worker.
The Government's stated target is for the National Living Wage to eventually reach £9.00 per hour by 2020.
Nevertheless, in response to the increase, Katherine Chapman, director of the Living Wage Foundation, stated: "We welcome any pay rise for low-paid workers, especially now in these uncertain times with speculation about food and other prices set to rise. The reality, however, is that a fifth of UK workers aren't paid enough to live on. There's still a gap between the Government minimum and our real Living Wage of £8.45 in the UK and £9.75 in London, which is based on what families need to earn to meet everyday costs. We encourage as many businesses who can to join our movement of 3,000 UK employers who are going further to pay a real Living Wage because a hard day's work deserves a fair day's pay."
The rates for the National Minimum Wage are scheduled to increase again from the 1st October 2017, but remain for the time-being as follows:-
- For workers aged 21-24 inclusive, the rate is £6.95 per hour
- For workers aged 18-20 inclusive, the rate is £5.55 per hour
- For workers aged 16-17 inclusive, the rate is £4.00 per hour
- The apprentice rate is £3.40 per hour.
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