Britain’s lowest paid to get a 4.9 per cent pay rise from April next year
The annual earnings of a full-time minimum wage worker will have increased by over £2,750 since the introduction of the national living wage in April 2016, it was estimated
BRITAIN’s lowest paid workers will get an inflation-busting 4.9 per cent pay rise next year.
Philip Hammond announced he was hiking the National Living Wage to £8.21 an hour - up from £7.83.
The move - which will come into force from April - will benefit around 2.4 million of the countries lowest paid workers.
It will give a full-time worker on the National Living Wage a £690 annual pay rise.
But it will only apply to workers aged over 25 and experts said it would still leave earnings lagging behind the cost of living.
The National Living Wage for 21-24 year-olds will be boosted by 4.3 per cent from £7.38 to £7.70 and for 18-20 year-olds it will rise by 4.2 per cent - from £5.90 to £6.15.
In total, the annual earnings of a full-time minimum wage worker will have increased by over £2,750 since the introduction of the national living wage in April 2016, it was estimated.
Philip Hammond told MPs that the Government had an ultimate objection of ending low pay, while wanting to protect employment.
Bryan Sanderson, chair of the Low Pay Commission, said: “The increase in the National Living Wage (NLW) to £8.21 in April 2019 will ensure a pay rise for the lowest-paid workers that exceeds both inflation and average earnings.
“Over the past year, the labour market has continued to perform well and the economy, while subdued, has met the criteria of ‘sustained growth’ set out in our remit for the NLW.
LIVING WAGE WORKER
£474 A YEAR BETTER OFF
SINGLE mum Laura Gregory brings up two children and works 24 hours a week as a part-time dental nurse.
Because the Living Wage is going up from April by 38 pence an hour £7.83 to £8.21, she will be £474 a year better off.
That’s an extra £9.12 a week to help her bring up daughter Summer, 11, and son Rossy, four.
Laura, 29, from Dartford, Kent, also receives £10,600 in tax credits and child benefit, taking her income to nearly £20,000.
She said: “Another near £500 a year is a great boost. This Chancellor is really helping people like me.
“It will be the third rise in the Living Wage in the last three years and it makes a real difference.
“I’ll be able to do a bit more with the kids each month.
“Summer says she wants more iTunes vouchers.”
Laura added: “Life will just be that bit easier.
“If gas and electric go up, or there’s an unexpected bill, it means I won’t get stressed.”
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"We therefore recommended an increase in line with a path to 60 per cent of median earnings by 2020.”
On current forecasts the National Living Wage could reach £8.62 an hour by 2020.
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