The Chancellor has confirmed in his recent Spending Review that there will be a 2.2% increase to the National Living Wage, up to £8.91 per hour which equates to an extra £345 per year for those working full-time.
More young people will be eligible as the National Living Wage age threshold is lowered from 25 to 23:
National Living Wage (23+) to increase 2.2%, from £8.72 to £8.91
National Minimum Wage (18-20) to increase 1.7% from £6.45 to £6.56
National Minimum Wage (under 18) to increase 1.5% from £4.55 to £4.62
Apprenticeship Wage to increase 3.6% from £4.15 to £4.30
This good news means the annual earnings of someone who is in full-time employment in the National Living Wage will have gone up by over £4,000 since its introduction in April 2016.
It has been a challenging year for all of us, and I'm pleased the Government is committed to putting more money into the pockets of the lowest-paid workers in the United Kingdom.
This early announcement will give businesses across the country time to adjust, ready for April 2021.
Until next time ...
ROGER EDDOWES Business Godparent
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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