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National Living Wage will rise to £8.72 an hour

By Rachel Lawlerabacus

The National Living Wage will increase to £8.72 an hour in April this year, an increase of more than 6% on the current minimum rate.

According to the government, this increase will mean that a full-time worker on the statutory minimum rate will earn an additional £930 each year.

The national minimum wages are also set to increase across all age groups, with rates set to increase by up to 6.5% on 1 April 2020.

The new minimum wages will be:

Age group

Current minimum rate

Minimum rate from 1 April 2020

25+

£8.21

£8.72

21-24

£7.70

£8.20

18-20

£6.15

£6.45

Under 18s

£4.35

£4.55

Apprentices

£3.90

£4.15

 

The government estimates that nearly 3 million workers will see their pay increased as a result of the new minimum rates.

Andrea Leadsom, business and energy secretary, commented: “Our people’s pay rise will put more money into the pockets of millions of hard-working Brits across the country – but we won’t stop there.

“We want to make the UK the first country in the world to eliminate low pay in the next five years.”

Last year, independent experts Ceeda estimated that the government’s plans to increase the National Living Wage without any adjustment to early years funding rates would create a £824 million funding shortfall in the early years sector.

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