Living wage will be increased to £7.83 for workers over 25

THE Government’s national living wage is set to increase by 33p an hour for workers aged over 25, the Chancellor has announced.

Under the changes, to begin next April, pay will rise from £7.50 to £7.83 following the recommendation of the independent Low Pay Commission.

The statutory rates, which replaced the minimum wage last year, will still be lower than the voluntary “real” living wage of £10.20 an hour in London and £8.75 outside the capital.

Speaking in the Commons, Philip Hammond told MPS: “Making work pay is core to the philosophy of this Government. From April, it will rise 4.4 per cent, handing full-time workers a £600 increase and taking the total rise since its introduction to over £2,000 a year.”

“We also accept recommendations on national minimum wage, supporting young people with the largest increase in youth rates in 10 years.”

Statutory rates for 21 to 24-year-olds will go up by 33p to £7.38, by 30p for 18 to 20-year-olds to £5.90, and 15p to £4.20 for 16 and 17-year-olds.