National living wage rise helps millions

Increases to the national living wage raised the pay of up to five million workers this year, according to a new study.

The figure was lower than in 2017, representing a fifth of all workers aged 25 and over, said the Low Pay Commission.

The statutory minimum is £7.83 an hour for adult workers, rising to £8.21 from April.

The 38p increase represents a 4.9 per cent rise, meaning the UK’S lowest paid workers will see their pay increase above existing levels of inflation.

The commission, which recommends the rates, said it heard from employers about how they had accepted lower profits, increased prices or restructured workforces to deal with increases in the minimum wage. Its research did not find any evidence of any negative effects on employment.

Bryan Sanderson, who chairs the commission, said: “That five million workers received higher pay rises in April than they would have done without the national living wage shows how significant an intervention it has been in the labour market.

“So far, the evidence suggests the national living wage has been successful in raising pay without causing unemployment.”