Happy New Year - our first newsletter of 2021! Throughout this year we will continue to bring you news and developments relating to the charities sector.
On 29 October 2018, the Chancellor of the Exchequer delivered his annual Budget to Parliament. Amongst many announcements, this year’s Budget contained the news that the National Living Wage (NLW) will increase from April 2019.
For workers aged 25 years or older, the NLW will increase from £7.83 per hour to £8.21 per hour. For someone working 35 hours per week on the NLW rate of pay, this will mean a pay rise of £690 over the course of the next financial year. This 4.9% increase follows the recommendations of the Low Pay Commission (LPC), which estimates that it will benefit around 2.4 million workers.
The National Minimum Wage rates for younger workers and apprentices will also rise in accordance with LPC recommendations:
- 21 to 24-year-olds: 4.3% increase from £7.38 to £7.70 per hour
- 18 to 20-year-olds: 4.2% increase from £5.90 to £6.15 per hour
- 16 to 17-year-olds: 3.6% increase from £4.20 to £4.35 per hour
- Apprentices: 5.4% increase from £3.70 to £3.90 per hour
The Government have stated that it is their objective for the NLW to reach 60% of median earnings by 2020.
A copy of the Budget Report is available to read in full here.
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