Both the National Living Wage and the National Minimum Wage rates for younger workers and apprentices saw above inflation increases in April. The National Living Wage is currently on target to reach 60 per cent of median hourly earnings in 2020, subject to sustained economic growth. The independent Low Pay Commission will recommend next year’s rates to us later this month, and we will announce the rates at the next Budget.
The Chancellor has also announced his intention to increase the National Living Wage to two-thirds of median hourly earnings within five years. He will confirm this at the next Budget.