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Chancellor increases Living and Minimum wage rates

Posted: 21st November 2018   In: Business Employment

Chancellor Philip Hammond has announced increases to the minimum wage rates.

During his Budget speech, Mr Hammond said the National Living Wage will rise by 4.9%, from £7.83 to £8.21 from next April. This amounts to a £690 annual pay increase for a full-time worker.

These are the increases recommended by the Low Pay Commission (LPC) and accepted in full by the government. They will come into effect in April 2019:

Mr Hammond said that he wanted the National Living Wage to reach 60% of Median Earnings by 2020, subject to sustained economic growth.

He told the House of Commons: “We will want to be ambitious with the ultimate objective of ending low pay in the UK, but we will also want to be careful – protecting employment for lower paid workers.

“So we will engage responsibly with employers, the TUC, and the LPC itself over the coming months, gathering evidence and views to ensure we get this right - and I will confirm the final remit at the Budget next year.”

Please contact Jacqueline Webb if you would like more information about the issues raised in this article or any aspect of employment law.

Posted by: Jacqueline Webb
Employment
Luton Office