The national living wage is to rise by 6.2% in what the government says is “the biggest cash increase ever”.
The rise is more than four times the rate of inflation and takes hourly pay for people over 25 to £8.72 from April.
Prime Minister Boris Johnson said: “For too long, people haven’t seen the pay rises they deserve.”
But businesses warned that a sharp increase in wages would put pressure on companies and urged the government to reduce costs elsewhere for firms.
The national living wage is the government-mandated minimum wage for over 25-year-olds. The minimum wage for under-25s will also rise.
From April 2020, the new rates are:
- The National Living Wage for ages 25 and above – up 6.2% to £8.72
- The National Minimum Wage for 21 to 24-year-olds – up 6.5% to £8.20
- For 18 to 20-year-olds – up 4.9% to £6.45
- For under-18s – up 4.6% to £4.55
- For apprentices – up 6.4% to £4.15