National living wage workers receive £600 pay rise

Economy & Politics | Employment & Skills | Latest News
Rise in national wage rates

Over two million people have received a pay rise this week thanks to an above-inflation rise in national living and minimum wage rates.

The National Living Wage has gone up by 4.4%, from £7.50 to £7.83, meaning a full-time minimum wage worker will be over £2,000 better off since the introduction of the National Living Wage in April 2016.

From today the tax-free personal allowance will also increase from £11,500 to £11,850.

Almost 400,000 young workers are expected to benefit from the fastest increases in the National Minimum Wage in more than 10 years.

Business minister Andrew Griffiths said: “Over 2 million people across the UK will get a step up in pay thanks to today’s rise in the National Living Wage and National Minimum Wage.

“The uplift means a pay rise of over £600 a year for a full time worker on the National Living Wage – that could be two months food shopping or a year’s electricity bills.

“So if you should be getting a rise this month, check your pay, talk to your boss and report underpayment to Acas or HMRC.”

Employers who underpay minimum wage rates can face fines of up to 200% of the back pay they owe to workers and can be publicly named by the Department for Business, Energy and Industrial Strategy.

Since 2013 the naming scheme has identified more than £9 million in back pay for around 67,000 workers, with more than 1,700 employers fined a total of £6.3 million.

Since 2015, the government has doubled investment in minimum wage enforcement, spending £25.3 million in 2017 to 2018.

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