Minimum wage 2020: What is the current national minimum wage and what date will it increase?

Tom Herbert31 December 2019

Workers in Britain are set to enjoy the "biggest ever" increase in the national living wage when it increases by 51p from April.

The national living wage is the name for the minimum wage level payable to adults over the age of 25 and will increase from £8.21 to £8.72 this year.

According to data from the independent Low Pay Commission, the cash boost is the largest since the rate was introduced in April 2016.

With the hike set to hit wallets soon, here's all you need to know about the increase to the national living wage.

What is the current minimum wage?

The current national living wage is set at £8.21 by the government for people aged 25 or older.

This rate is a legally binding, statutory minimum wage that is reviewed in April each year.

Those under the age of 25 and apprentices are paid at a lower rate, with 21 to 24-year-olds paid £7.70 an hour.

But from April, the living wage will jump by 50p to £8.72 an hour, while younger workers will see their pay boosted between 4.6 per cent and 6.5 per cent, depending on their age.

Those 21 to 24-year-olds who receive the government's national minimum wage will see a jump of 50p as well, from £7.70 an hour to £8.20 an hour.

The Government said nearly £3 million workers are set to benefit from the increases and it is “on track” to meet its current target for the NLW to reach 60 per cent of median earnings by 2020.

What date will the national living wage increase?

The new rate starts on April 1, 2020, and means full-time workers on the rate will enjoy an increase of £930 over the year.

Chancellor Sajid Javid said the wages of the lowest-paid full-time workers have increased by £3,600 since the national living wage was introduced in 2010.

He added: “But we want to do more to level up and tackle the cost of living, which is why the national living wage will increase further to £10.50 by 2024 on current forecasts.”

In September, when the Chancellor first announced the increase, he said the national living wage would rise towards two-thirds of median earnings by 2024, “provided economic conditions allow”, to about £10.50 per hour.

What are the new rates from April?

  • National living wage for people aged 25 years and above - £8.72
  • National minimum wage for people aged 21 to 24 - £8.20
  • Rate for 18-20-year-olds - £6.45
  • Under 18s - £4.55
  • Apprentices - £4.15

What is the real living wage?

The real living wage, also known as the voluntary living wage, is a campaign designed by the Living Wage Foundation that around 6,000 business have now joined.

It means around 210,000 staff across the UK are being paid a wage that has been based on living costs, with the foundation saying the Government's statutory wage is not high enough to meet them.

Just under 6,000 businesses have now been accredited by the Living Wage Foundation.

It is separate to the national living wage rates set by the government.

In London it is set at £10.75 an hour and outside the capital it is at £9.30 an hour.

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