National UK living wage to rise to £7.50 in April

National UK living wage to rise to £7.50 in April

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Chancellor Philip Hammond has announced a new wave of changes to the living wage – here is what you should know

The National Living Wage is set to rise to £7.50 an hour from April this year, in line with Chancellor Philip Hammond’s Autumn Statement and Spring Budget announcement.

The minimum wage for 25-year-olds will rise 4% from £7.20 to £7.50 an hour, in new plans set to go live on 1 April that will leave earners up to £500 better off.

Chancellor Philip Hammond said he hopes to give a big boost to the so-called ‘National Living Wage’, launched under his predecessor George Osborne’s vision, in a bid to get it to £9 by 2020.

But, experts say that rate should be more than £2 higher in London at £9.75, or £8.45 across the UK.

Katherine Chapman, director of the Living Wage Foundation, said: “We welcome any pay rise for low-paid workers, especially now in these uncertain times with speculations about food and other prices set to rise.

“The reality, however, is that a fifth of UK workers aren’t paid enough to live on. There’s still a gap between the government minimum and our real Living Wage of £8.45 in the UK and £9.75 in London, which is based on what families need to earn to meet everyday costs.

Hannah Maundrell, Editor in Chief of Money.co.uk said: Increasing the minimum living wage to £7.50 is a helping hand that’ll give full time workers a pay rise of around £600 a year but it’s still not quite enough to afford a decent standard of living.

“To really help struggling households £8.50 an hour would be nearer the mark instead. I’d imagine public sector workers are likely to be peeved at this increase as the 4% pay rise dwarfs the 1% cap being forced upon them for the next few years.”

The new minimum wage rates from 1 April 2017:

 

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Bosses are legally required to pay workers the following rates from the 1st April 2017: £7.50 if you’re over 25, £7.05 if you’re 21-24, £5.60 if you’re 18-20, £4.05 if you’re under 18, £3.50 if you’re an apprentice

Here at Evolution we will make sure that all of our Temporary and Permanent candidates get paid the correct amount when the new minimum wage has gone through!

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