National living wage rises by 4.9% from today

By Nikkie Sutton

- Last updated on GMT

Going up: Chancellor Philip Hammond announced a rise in the national living wage at the 2019 Autumn Budget
Going up: Chancellor Philip Hammond announced a rise in the national living wage at the 2019 Autumn Budget
The national living wage (NLW) paid to workers aged 25 or over has increased to £8.21 from today (1 April).

This was a rise of 4.9% (38p), up from £7.83 an hour and amounts to an annual increase of about £690 for a full-time employee.

During the Autumn Budget in October 2018, Hammond said: “From April, [the NLW] will rise again, by 4.9%, from £7.83 to £8.21 handing a full-time worker a further £690 annual pay increase and taking his or her total pay rise, since the introduction of the NLW to more than £2,750 a year.”

For workers aged between 21 and 24, NLW has risen by 4.3% from £7.38 to £7.70. Those aged 18 to 20 will receive 4.2% more as their wage has increased from £5.90 to £6.15.

Wage rise

Workers who are 16 to 17 will receive £4.35 an hour – up by 3.6% from £4.20 and apprentices will receive 5.4% more from £3.70 to £3.90 an hour.

Meanwhile, little of the 2019 Spring Budget last month (March) gave respite to the pub trade,​ with industry leaders calling for tax equality.

One of the biggest steps towards a level playing field would be the implementation of a strong digital services tax, said UKHospitality (UKH) in response to the budget.

The Government’s recent digital services tax consultation outlined the potential for tax equality, which UKH welcomed, saying it was a step towards fairness.

Reflect realities

Using such revenues to bolster the high street by offsetting rates bills, overpaid by the hospitality sector, would be a bonus, said the organisation.

“UKHospitality has repeatedly called for the introduction of a digital tax to level the playing field and better reflect the realities of business in the 21st century,” said UKH chief executive Kate Nicholls.

However, British Beer & Pub Association chief executive Brigid Simmonds believed there was some encouraging news for the sector within the statement.

By bringing forward apprenticeship scheme reforms worth £700m to April, co-investment in the funding for roles could be reduced by as much as 5%, she said.

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