Nearly 3m workers in the UK are set to benefit from a rise in the national living wage in 2020, the government has said.
The government announced today (December 31) the NLW is to increase from £8.21 to £8.72 on April 1, 2020.
The rise applies to over 25 year olds and will mark a 6.2 per cent rise from the current level.
A full time worker will see their annual pay rise up to £930.
Depending on age, younger workers who receive the national minimum wage will also see a rise of between 4.6-6.5 per cent. Those aged between 21-24 year will see a 6.5 per cent increase from £7.70 to £8.20 an hour.
Chancellor of the Exchequer, Sajid Javid, said: “We want to end low pay and put more money in the pockets of hard-working families.
“This latest rise will mean that since we introduced the National Living Wage in 2016, the lowest paid will have had a wage increase of more than £3,600."
Mr Javid added that current forecasts indicate NLW will increase further to £10.50 by 2024.
The pledge to raise the national living wage to match two-thirds of median earnings over the next five years was first announced by Mr Javid in September at the Conservative Party Conference.
The Chancellor also signalled his intent to expand the remit of the NLW.
From April 2021, NLW is expected to cover workers aged 23, while those aged 21 and over are due to be included within the next five years.
The government expects this to benefit around 4m workers.
More details on the future policy framework, including the role of independent low pay commissions are due this Spring.
saloni.sardana@ft.com
