The Government has announced that the National Living Wage (NLW) will be increased by 6.2% (to £8.72 per hr) from
1 April.
Younger workers who receive the National Minimum Wage will also see their pay boosted, with increases ranging from 4.6% to 6.5% (depending on their age); 21- to 24-year-olds will get the 6.5% increase, from £7.70 to £8.20 per hour.
In September, the Chancellor pledged to increase the NLW towards a new target of two-thirds of median earnings by 2024, provided that economic conditions allow; on current forecasts, this would make it around £10.50 per hr.
The Chancellor has also announced plans to expand the reach of the NLW to cover workers aged 23 and over from April 2021, and those aged 21 and over within five years.