National Living Wage – 1st April 2016

Posted to News on Fri, 12 Feb, 2016

From 1 April 2016 workers in the UK aged over 25 earning the minimum rate of £6.70 per hour will see a 50p increase.

The National Living Wage supports the government’s vision of a higher wage, lower welfare, lower tax society.

More than 70% of workers have said they will feel more positive for themselves and their families as a result of the introduction of the new National Living Wage, announced by the Chancellor at the Summer Budget.

The findings are part of a new government survey which also shows that 59% of respondents will feel more motivated at work as a result of the increase in their pay packets.

Over a million workers in the UK aged 25 and over are set to directly benefit from the increase, which sees the current minimum rate of £6.70 increase by 50p. Many will see their pay packets rise by up to £900 a year. This will be the largest annual increase in a minimum wage rate across any G7 country since 2009 in cash and real terms.

The survey results coincide with the launch of a new advertising campaign based around real people talking about the positive effect the new National Living Wage will have on their lives.

The government believes that Britain deserves a pay rise and our new National Living Wage will give a direct boost to over a million people. We are building a more productive Britain and giving families the security of well-paid work.

This is a step up for working people, so it is important workers know their rights and that employers pay the new £7.20 from April 1 this year.

The move will support hard working families across the country. They will also benefit from an increase in the personal allowance, taking the lowest paid out of tax, while free childcare will increase to 30 hours, helping household budgets stretch further.

The government is continuing to raise awareness to businesses to make sure they are ready to pay the new wage on 1 April 2016. As part of this, it has published a four-step guide for businesses on the living wage website, asking firms to:

  1. Check you know who is eligible in your organisation.
  2. Take the appropriate payroll action.
  3. Let your staff know about their new pay rate.
  4. Check your staff under 25 are earning at least the right rate of National Minimum Wage.

HMRC will have responsibility for enforcing the new National Living Wage in addition to the National Minimum Wage from April 2016 and will take firm action where an employer fails to pay the correct wage.