UK National Living Wage to rise to £9.50 an hour in April

The UK national living wage [1] is set to rise to £9.50 an hour in April, resulting in a pay rise for millions of low-wage earners.  

The 59 pence increase will deliver an annual salary boost of an extra £1,000 to full-time workers aged 23 and over. 

Chancellor Rishi Sunak announced the move at Wednesday’s Autumn Budget [2], following counsel from The Low Pay Commissions. It marks the third-biggest hike since the 2008 financial crisis.

The 6.6% increase is expected to set the minimum wage back on track to reach the Government’s target of two-thirds of median earnings by 2024.

Alongside the National Living Wage hike, the Commission recommended significant rises in National Minimum Wage (NMW) rates for younger workers. The 21-22-year-old rate will increase to £9.18, narrowing the gap with the NLW and leaving this age group on course to receive the full NLW by 2024. NMW rates for 18-20 and 16-17-year-olds will also increase with underlying wage growth.

Bryan Sanderson, Low Pay Commission Chair, said: “The rates we recommended will put money in the pockets of care workers, food distributors and many other groups of the lowest-paid members of our society up and down the UK. Many of them have made a vital contribution during the last few difficult months.

The pandemic has been an exceptionally difficult period for businesses and workers alike, but the labour market has recovered strongly, and the economy is expected to continue to grow over the next year. This is attributable in no small part to comprehensive Government support.”