The national living wage will rise by 6.2% to £8.72 in 2020, the biggest increase since its introduction in April 2016.
The government has estimated that almost three million UK workers will receive increases to their pay as a result of the increase, which will come into effect on 1 April 2020, and will result in an annual rise of £930. The new rates were recommended by the Low Pay Commission, an independent body that advises government on the national living wage and national minimum wage.
The national minimum wage is also set to increase across all age groups. This will see rises of:
- 6.5% for those aged between 21 and 24 (to £8.72, up from £8.21)
- 4.9% for 18 to 20 year-olds (to £8.20 from £7.70)
- 4.6% increase for under 18s (to £6.45 from £6.15)
- 6.4% for apprentices (to £4.15 from £3.90)