Millions of Brits will see a boost to their pay packets next year, due to an increase in the National Living Wage.
Chancellor Jeremy Hunt has announced an increase of £1.02 an-hour to be introduced in April - meaning the National Living Wage for those 21 and over will rise to £11.44 an-hour.
The rate is currently £10.42 for workers aged over 23, but the new figure will apply to 21 and 22-year-olds for the first time.
Advert
The rate for those aged 18 to 20 will rise to £8.60 an-hour, while 16 to 17-year-olds will be on £6.40 an-hour, which will also be the new hourly rate for apprentices.
Hunt said: “Next April all full-time workers on the National Living Wage will get a pay rise of over £1,800-a-year. That will end low pay in this country, delivering on our manifesto promise.
“The National Living Wage has helped halve the number of people on low pay since 2010, making sure work always pays.”
In a statement, the Government said: “This will be the largest ever increase in the minimum wage in cash terms and the first time it has increased by more than £1.
"The size of this increase is driven by the strength of pay growth across the economy, which is forecast to continue into next year.”
Bryan Sanderson - chair of The Low Pay Commission, which made the age increase recommendations to the government - said: “The National Living Wage has delivered an improved standard of living to thousands of people who care for our children and elderly, work in farms and shops and at many other essential jobs.
"These efforts over the lifetime of the NLW mean over £9,000 p.a. more to a full time worker without any increase in unemployment.
“This hasn’t been easy for employers, with the economy facing a range of unprecedented challenges in recent years.
"The high degree of political and economic uncertainty has made assessing and forecasting the performance of the economy, and therefore our task, very difficult. It is a tribute to my fellow Commissioners that we have continued to achieve consensus.
“Our new recommendation of a National Living Wage of £11.44 attempts to steer a path through this uncertainty and achieve the government target of two-thirds of the median wage, an outcome which if accepted would position the UK at the forefront of comparable economies.”
Further measures will be set out by Hunt in Wednesday’s autumn statement.
Claire Reid