National Living Wage to increase by 33p an hour

THE National Living Wage is to increase by 33p an hour to £7.83 next April for workers aged over 25, the Chancellor has announced.

Statutory rates for 21 to 24-year-olds will go up by the same amount 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.

The rate for apprentices aged under 19 or in the first year of an apprenticeship will increase by 20p to £3.70.

The new National Living Wage will still be lower than the voluntary “real” living wage of £10.20 an hour in London and £8.75 outside the capital.

The higher rates, set by the Living Wage Foundation, are paid by thousands of employers.

Bryan Sanderson, chairman of the Low Pay Commission, said: “The core decision was whether the most recent economic evidence met the condition of sustained economic growth to enable the National Living Wage to be uprated in line with the path to 60% of median earnings.

“Commissioners weighed the available evidence carefully, judged that it did and agreed to keep a steady course to 2020. The recommended rate of £7.83 is in line with the indicative rate of £7.85 that we set out last October.

“For young people aged between 18 and 24, commissioners judged that economic conditions warranted larger percentage increases. There have been ongoing improvements in their employment and unemployment position, and their earnings have been growing faster than those of workers aged 25 and over for three years.

“This is good news for the millions of low-paid workers who are paid at the minimum rates.”