National Living Wage to hike in April 2017

The minimum wage for over 25s will rise by 4 per cent from £7.20 per hour to £7.50 per hour from April next year, following an announcement by Chancellor Philip Hammond in his first Autumn Statement.

Mr Hammond will give a boost to the National Living Wage, launched under his predecessor George Osborne, in a bid to get to the Government’s 2020 target of £9 an hour.

The figure was recommended by the independent Low Pay Commission and is 10p lower than some had been expecting because average wages have been lower.

Pay rise worth over £500 a year to a full-time employee.

The increase is worth an additional £500 a year to a full-time employee who works a 30 hour week. And at just over four per cent, the rise is well above the one per cent rate of inflation.

Unfortunately despite the hike a fifth of UK workers aren’t paid enough to live on. There’s still a considerable gap between the Government minimum wage and the real Living Wage of £8.45 in the UK and £9.75 in London, based on what families need to earn to meet everyday costs.

Originally introduced by George Osborne in April, the former chancellor made a commitment that the National Living Wage would reach £9 an hour by the end of 2020 which could place extra burden on employers.

What is the National Living Wage?

The Government’s new National Living Wage became law on 1 April 2016 under the former Chancellor George Osborne. If you’re working and aged 25 or over and not in the first year of an apprenticeship, you are currently legally entitled to at least £7.20 per hour.

Employers are currently required by law to pay workers the following rates: £7.20 (£7.50 from 1 April 2017) if you’re over 25, £6.50 if you’re over 21, £5.13 if you’re 18-21 and £3.79 if you’re under 18.

By Mark Burton

Orbital Recruitment are a supplier of personnel for both temporary and permanent vacancies to companies throughout the UK. Find out more about the recruitment services we offer or call 0333 323 2121 to speak to a member of the team who will be happy to help.