National Minimum Wage and National Living Wage to rise – pay boost of up to £345

The Chancellor of the Exchequer Rishi Sunak has confirmed the National Living Wage will rise to £8.91 per hour, an increase of 2.2 percent. Currently, the National Living Wage is £8.72 per hour.

Mr Sunak said the move would “likely benefit” around two million people.

It means that a full-time worker on National Living Wage can expect to receive £345 more next year.

Speaking today, Mr Sunak said: “We are accepting in full the recommendations of the Low Pay Commission to increase the National Living Wage by 2.2 percent to £8.91 an hour.

“To extend this rate to those aged 23 and over, and to increase the National Minimum Wage rates as well.


“Taken together these minimum wage increases will likely benefit two million people.”

“A full-time worker on the National Living Wage will see their annual earnings increase by £345 next year,” he added.

“Compared to 2016 when the policy was first introduced, that’s a pay rise of over £4,000.”

Elsewhere during the Spending Review, Mr Sunak announced nearly £3billion would be allocated for the Work and Pensions Secretary to deliver a new three-year Restart programme.

He continued: “We will protect those on lower incomes.

“The 2.1 million public sector workers who earn below the median wage of £24,000 will be guaranteed a pay rise of at least £250.”

Commenting, Ben Willmott, Head of Public Policy for the CIPD, the professional body for HR and people development, said: “The CIPD welcomes the government’s decision to accept the recommendation of the LPC to increase the NLW by 2.2 percent from next April and to lower the age threshold to 23.

“We believe that this decision helps protect both employee earnings and jobs in those sectors disproportionately affected by the pandemic.”



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