Minimum wage increase 2020: What is the new National Living Wage?

The National Living Wage is the hourly rate for the minimum wage depending on your age and whether you are an apprentice. The government has vowed to introduce a new National Living Wage in 2020 which will see low-paid persons earn nearly a £1,000 more per year. But what exactly is the current National Living Wage and how is it changing in April?

What is the National Living Wage?

The National Living Wage is an obligatory minimum wage paid to workers in the UK aged 25 and above.

The payment first came into effect in April 2016 and was introduced by the then-Chancellor of the Exchequer George Osborne.

The wage began at £7.20 per hour in April 2016 and was projected to rise to at least £9 per hour by April 2020.

READ MORE: Boris Johnson’s plan to raise wages across the country receives boost

Mr Johnson said: “Hard work should always pay, but for too long, people haven’t seen the pay rises they deserve.”

He added: “Our government will put a stop to that, giving nearly three million people from Edinburgh to Eastbourne a well-earned pay rise, including the biggest ever cash boost to the National Living Wage.”

The Conservative Party promised to increase the National Living Wage to £10.50 an hour over the next five years if “economic conditions allow”.

Chancellor of the Exchequer Sajid Javid said: “We want to end low pay and put more money in the pockets of hard-working families.

“This latest rise will mean that since we introduced the National Living Wage in 2016, the lowest paid will have had a wage increase of more than £3,600.”