Treasury announces boost to National Living Wage

The Treasury has announced the largest ever cash increase in the National Living Wage as the government moves to deliver on its promise to raise living standards as the UK exits the European Union.

From 1 April, workers over 25 years of age will see their hourly wage rise by 6.2%, from £8.21 to £8.72, equating to a £930 increase for full time workers.

According to the Treasury, which cited the Low Pay Commission, the higher NLW and minimum wage would benefit approximately 3.0m workers and put the NLW on track to reach a level equal to 60.0% of the median earnings in the UK by 2020.

In September, the Chancellor, Sajid Javid, had set a new target for the NLW, calling for it to rise to two-thirds of the median UK wage, or roughly £10.5 an hour, provided economic conditions allowed that.

For younger workers on the National Minimum Wage, their hourly pay was set to rise by between 4.6-6.5%, with 21-24 year olds experiencing a 6.5% jump to £8.20 an hour.

"Hard work should always pay, but for too long, people haven’t seen the pay rises they deserve," said Prime Minister Boris Johnson in a statement.

"But that’s not all. As we enter a new decade, we’re setting our sights higher, to help people earn more over the next five years and level up access to opportunity across our great country."

For his part, the Chancellor, Sajid Javid, highlighted how since the introduction of the NLW in 2016, the lowest paid had seen seen their wages go up by over £3,600.

"But we want to do more to level up and tackle the cost of living, which is why the NLW will increase further to £10.50 by 2024 on current forecasts."