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
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the increases to the National Minimum Wage and National Living Wage, call me on 01908 774320, leave a comment below or click here to ping over an email and let's see how I can help you.
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.
No unauthorised use, duplication, distribution or modification to any original content contained within this blog is permitted without prior written permission of the author. All other trademarks and registered names are acknowledged.